U.S. drugmaker Gilead Sciences (NASDAQ:GILD) on Monday said it had resolved litigation and patent challenges with several generic pharmaceutical companies associated with its HIV drugs Descovy and Odefsey and hepatitis B virus drug Vemlidy.
The settlements were with Canada's Apotex and Indian generic firms Lupin, Macleods Pharma, Hetero Labs and Cipla, GILD said in a regulatory filing.
As per the agreements, the generic drugmakers were granted a non-exclusive license in the U.S. to the company's patents on tenofovir alafenamide relating to Descovy and Vemlidy beginning on Oct. 31, 2031, and to Odefsey starting Jan. 31, 2032.
The agreements essentially ensure that Gilead (GILD) will be the only maker of the HIV and HBV drugs in the U.S. until 2031 and 2032, after which the generic drugmakers would be able to make generic versions of the drugs.
"We view (the settlements) as a key positive for the HIV franchise longevity potential $3B in sales these products generate, and see potential for stock upside on today's news," RBC Capital Markets research analyst Brian Abrahams said in a brief research note.
GILD stock was 4.3% higher to $68.10 in early trading.