Merck Wins Drug Patent Lawsuit but Fails to Collect

by | Jun 16, 2016 | Big Pharma Lawsuits | 0 comments

A recent battle of pharmaceutical heavyweights Gilead and Merck has resulted in both companies walking away with a black eye. The dispute over a hepatitis C drug patent showed Gilead as the clear loser but also denied Merck its $200 million winning settlement.

“Blockbuster” Drug Patent In Dispute

The argument between the companies revolves around Sovaldi (sofosbuvir) and Harvoni (a combination of ledipasvir and sofosbuvir). Pharma insiders call “blockbuster” treatments because they are more likely to cure hepatitis C than previous treatments. Patients also experience shorter treatment time and more tolerable side effects from these new drugs.

Merck Wins $200 Million Settlement but Court Overturns It

Merck sued Gilead for drug patent infringement and won a verdict in March. The settlement stated that Gilead must pay Merck $200 million.

However, this month a US District Court judge overturned the March jury’s verdict saying, “Merck is guilty of unclean hands and forfeits its right to prosecute this action against Gilead.”

The judge cited evidence that a former Merck patent attorney stole the chemical structure of an experimental hepatitis C drug while on a conference call with a drug company called Pharmasset Inc, which Gilead subsequently acquired.

Patents on Hepatitis C Drugs Are Extremely Profitable

A great deal of money is at stake in these drug patent battles:

    • Solvaldi can cost patients up to $84,000 for its 12-week treatment and Harvoni costs $94,500.
    • Gilead made over $19 billion in 2015 with Harvoni and Sovaldi

    More Battles Are Probably Ahead

    The lawsuit between Gilead and Merck is just a tiny portion of the litigation surrounding hepatitis C drug patents. In addition to suing each other, Gilead and Merck have smaller companies suing them for patents as well. Mergers and acquisitions by the bigger companies cloud the drug landscape even further.

    Don’t be tempted to think, though, that competing drug companies could bring down the cost of hepatitis C drugs. Since no generics are available, Merck and Gilead form a virtual duopoly on these life-saving drugs. After all, it takes a lot of money to pay an army of lawyers.