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Wednesday, 16 November 2005 09:48 GMT
Roche and Gilead settle dispute over Tamiflu
ZURICH, Nov 16 (APM) - Roche announced on Wednesday it had settled its dispute with Gilead Sciences over the rights and royalties on Tamiflu (oseltamivir).
The U.S. inventor of Tamiflu threatened in June to end a deal signed in 1996 under which Roche got an exclusive licence to manufacture and sell the antiviral drug worldwide, saying Roche had failed to adequately promote it.
Under the resolution, Gilead and Roche said they will establish a joint committe to oversee the coordination of global manufacturing - including negotiations to give third parties the rights to manufacture the drug.
Roche has come under pressure from governments around the world to increase its production capacity for the treatment and said last month that it would consider allowing other parties, such as generic drugmakers, to produce the remedy.
Gilead will also have a greater say in selling Tamiflu as a seasonal flu treatment and will have the option to co-promote the drug in specialised areas in the United States.
Roche said that Gilead's royalties would remain unchanged, with the U.S. firm receiving between 14 and 22 percent of Roche's annual net sales of the drug.
This would work out at 18 to 19 percent for 2005, the firms said. Roche has already sold 859 million Swiss francs ($649.8 million) worth of Tamiflu in the first nine months of 2005.
Roche will pay Gilead $62.5 million in royalty reimbursements and has said that the U.S. firm could keep $18.2 million which Roche had paid in protest over a dispute on royalty calculations for sales in 2001 to 2003.
rtr/ns/rw
[626] 16/11/2005 09:48 GMT - INDUSTRY
The U.S. inventor of Tamiflu threatened in June to end a deal signed in 1996 under which Roche got an exclusive licence to manufacture and sell the antiviral drug worldwide, saying Roche had failed to adequately promote it.
Under the resolution, Gilead and Roche said they will establish a joint committe to oversee the coordination of global manufacturing - including negotiations to give third parties the rights to manufacture the drug.
Roche has come under pressure from governments around the world to increase its production capacity for the treatment and said last month that it would consider allowing other parties, such as generic drugmakers, to produce the remedy.
Gilead will also have a greater say in selling Tamiflu as a seasonal flu treatment and will have the option to co-promote the drug in specialised areas in the United States.
Roche said that Gilead's royalties would remain unchanged, with the U.S. firm receiving between 14 and 22 percent of Roche's annual net sales of the drug.
This would work out at 18 to 19 percent for 2005, the firms said. Roche has already sold 859 million Swiss francs ($649.8 million) worth of Tamiflu in the first nine months of 2005.
Roche will pay Gilead $62.5 million in royalty reimbursements and has said that the U.S. firm could keep $18.2 million which Roche had paid in protest over a dispute on royalty calculations for sales in 2001 to 2003.
rtr/ns/rw
[626] 16/11/2005 09:48 GMT - INDUSTRY
