Gilead charges CDC with contract breach on HIV research

Gilead Sciences (NASDAQ:GILD) says in a statement that it’s filed a breach of contract suit against the federal government, tied to contracts governing the collaboration of Gilead with the Centers for Disease Control and prevention.

The company alleges violation of four Material Transfer Agreements and a Clinical Trial Agreement by CDC, which covered the more than 15 years Gilead worked with the CDC on studies tied to using antiretroviral agents to prevent HIV infection.

Gilead had agreed to provide CDC with “significant quantities” of Gilead compounds free of charge, in return for prompt notification of any inventions, discoveries or ideas resulting from research – and a promise not to seek patent protection on alleged inventions.

“Despite these contractual obligations, in 2006 the U.S. Department of Health and Human Services (HHS) improperly filed for patent protection, without providing the required notification to Gilead,” the company says. “Subsequent to this 2006 filing and over the following eight years, the CDC entered into additional and separate collaboration agreements with Gilead and never notified Gilead of the patent application, as it was contractually required to do.”

The government has filed suit against Gilead alleging infringement of four HHS patents tied to using Gilead-provided medicine, Gilead says.

https://seekingalpha.com/news/3564384-gilead-charges-cdc-contract-breach-on-hiv-research