Things haven’t worked the way Gilead Sciences, Inc. (NASDAQ:GILD) would have expected in patent lawsuit case against Merck. As per the reports, the jury’s decision against Gilead Sciences has put it in deep trouble where it might have to pay billions of dollars in the form of royalty payments and penalty charges to Merck for infringing the patent law.
Everyone is busy guessing Gilead Sciences’ response in this case; however, company’s CEO John Milligan doesn’t want to prolong this confusing state any long. While talking to a major daily, Milligan said that the dispute doesn’t end with this verdict. In his opinion, Gilead believes that Merck’s case is invalid, and it shouldn’t get the benefit of the doubt. Gilead is planning to file a complaint against this decision in the higher court.
Strong Need For Patents
The case of Gilead Sciences and Merck is a classic example of how biotechnology industry has become the focal point of patent infringements. More than work on a drug, businesses pay attention to how they can file a lawsuit against other companies selling similar drugs. On many instances, this practice has benefitted them billions of dollars, which is prompting new companies to opt for it again and again.
To make sure that biotechnology industry can maintain the standards it is known for, authorities should try to implement strong patent laws that can stop companies from getting benefitted using such tactics. Only time will tell whether any such law can be formulated or not.
Will Gilead Pay Billions of Dollars To Merck
Meanwhile, a number of leading publications wrote about this patent lawsuit and how Gilead Sciences failed to make an impact in this case. They believe that Gilead Sciences may have to pay billions of dollars to Merck for infringing its patents. Previously, Merck demanded 10% royalty from Gilead’s U.S. sales of hepatitis C treatments. The jury is yet to decide the exact amount Gilead Sciences owes to Merck.