Gilead Sciences sets aside USD 200 million to resolve HIV drug investigation
New York: Gilead Sciences has allocated USD 200 million to potentially settle with federal prosecutors to resolve an investigation into its promotional speakers program for HIV drugs.
The pharmaceutical giant disclosed the potential resolution with the Manhattan U.S. Attorney's office in a securities filing on Friday afternoon
Gilead said it had received a subpoena in 2017, but did not provide additional details about the probe in its filing.
The company, which first disclosed the probe in 2018, said in a statement on Monday: "We have taken a litigation accrual for a potential settlement.
A spokesman for the Manhattan U.S. Attorney's office declined to comment, Reuters said.
Promotional speaker programs in which doctors are paid by drugmakers to deliver lectures about their products have drawn past Justice Department scrutiny.
In 2020, Swiss drugmaker Novartis paid more than $600 million to settle with the Manhattan U.S. Attorney over claims its speaker program was a cover for paying bribes to doctors to prescribe its medication.
Novartis at the time said it was "committed to doing what is right" and had established an enhanced compliance framework.
Gilead's HIV drug sales rose 16per cent to $5.45 billion in the fourth quarter of 2024, contributing to a surge in its share price.
The company expects to launch a new drug, lenacapavir, for protecting against HIV infection later this year.
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