Roche Pays Gilead Sciences (GILD) $62.5M, Royalties To End Tamiflu Dispute

FOSTER CITY, Calif.--(BUSINESS WIRE)--Nov. 16, 2005--Gilead Sciences, Inc. (Nasdaq:GILD) and Roche today announced the companies have ended their dispute related to the companies' 1996 Development and License Agreement for Tamiflu(R) (oseltamivir phosphate). With increasing public concern over the threat of an influenza pandemic, in particular related to the growing incidence of avian influenza, Gilead and Roche have reached this settlement in the interest of working together to address public health needs. Tamiflu, the only oral antiviral for the treatment and prevention of influenza A and B, was invented by Gilead and licensed to Roche in 1996. The companies collaborated on the development of the product, advancing Tamiflu through clinical trials, initiated in 1997, to its first market approval approximately two and a half years later. In June of this year, Gilead delivered a notice of termination to Roche for the companies' 1996 Agreement and the companies subsequently entered into arbitration. With today's execution of an amendment to the 1996 agreement, Gilead has terminated arbitration proceedings with Roche. Under the terms of the amended agreement, Gilead and Roche will establish joint committees to oversee manufacturing, commercial and pandemic planning for the product. Gilead will also have the option to co-promote Tamiflu in specialized areas in the United States. Gilead will not co-promote Tamiflu in 2006 and has not yet determined whether it will exercise its option for co-promotion in 2007 or beyond.