MSD may get $ 2.5 billion from Gilead in patent litigation

A federal jury in the U.S. state of Delaware has ruled that the pharmaceutical company Gilead Sciences must pay the pharmaceutical company MSD (known as Merck & Co. in the U.S. and Canada) $2.54 billion for infringing its patents while developing expensive drugs for the treatment of hepatitis C. This is the largest amount in the history of U.S. patent disputes.

The jury found that in developing two drugs – Sovaldi and Harvoni – Gilead infringed two patents held by Idenix Pharmaceuticals, which was acquired by MSD for $3.9 billion in 2014. Gilead will have to pay $2.54 billion, or 10% of the total sales of Sovaldi and Harvoni (up to and including August 2016), which amounted to $25.4 billion.

"We continue to maintain that Idenix's U.S. patent is invalid," said representatives of Gilead, adding that the verdict does not affect the company's right to sell its hepatitis C drugs. In 2015, Gilead sold $12.5 billion worth of the drugs in the U.S. and $19.1 billion worldwide.

If the judge upholds the jury's verdict, Gilead will file an appeal. MSD stated that the judge could increase the awarded amount at his discretion.

In March, a jury in California ruled that Gilead must pay MSD $200 million for infringing its patents in the development of the same Sovaldi and Harvoni. However, the judge later sided with Gilead, concluding that to obtain the patents, MSD had used confidential information from the company Pharmasset, which was developing hepatitis C drugs and which Gilead acquired in 2011 for approximately $11 billion.

Gilead Sciences Inc. is an American biopharmaceutical company whose main area of activity is the development and research of drugs against HIV and AIDS. The number of employees is about 5,000 people. The company's revenue in 2015 was $32.6 billion, with a profit of $18.1 billion.

MSD (Merck Sharp & Dohme) is an American pharmaceutical company founded in 1891. MSD specializes in innovative prescription medicines, vaccines, biological therapies, and animal health products. The company operates in more than 140 countries. In 2015, MSD's revenue was $39.5 billion, with a profit of $4.4 billion.