Please ensure Javascript is enabled for purposes of website accessibility

An Emboldened Bristol-Myers Squibb Wants $1.5 Billion From Gilead Sciences

By Cory Renauer - Jan 24, 2020 at 2:27PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A jury that told Gilead Sciences to pay $752 million worth of patent infringement damages didn't go as far as necessary, says Bristol-Myers Squibb.

Last year, Bristol-Myers Squibb (BMY 0.30%) spent $74 billion for Celgene and its mixed bag of commercial and clinical-stage drugs. Analysts are still arguing about whether the big pharma overpaid, but last month a jury helped tip the scales in Bristol's favor by ordering Gilead Sciences (GILD 0.90%) to pay Bristol $752 million in damages for infringing on patents that Celgene acquired years earlier.

In a recently filed motion, Bristol-Myers asked a federal judge in California to include punitive damages that would raise Gilead's penalty to $1.5 billion to include punitive damages along with compensation and a royalty rate of 27.6% on Yescarta sales. 


White tablets on a pile of cash money.

Image source: Getty Images.

Bristol-Myers Squibb's argument 

According to Bristol-Myers, the Kite Pharma subsidiary that Gilead acquired for $11.9 billion in 2017 willfully infringed on patents that Juno Therapeutics licensed from Memorial Sloan Kettering Cancer Center. While $752 million is a princely sum, it only covers the amount Juno might have received if Kite had agreed on a licensing arrangement for the patent Yescarta infringed upon.

Bristol-Myers, would like to see Gilead pay punitive damages equal to the compensation already owed because the jury's verdict shows that Kite, and later Gilead knew Yescarta would infringe and avoided striking a costly deal with Juno and Sloan.

Gilead's defense

Gilead's subsidiary has requested a do-over because it wasn't allowed sufficient time to prepare its full case to the jury and the list of grievances continues to pile up. 

Kite claims the patent at the heart of the argument lacked adequate written description and enablement. Kite also wants to argue that the patent involved claims more chimeric antigen receptors than Sloan and Juno actually invented.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Bristol Myers Squibb Company Stock Quote
Bristol Myers Squibb Company
$76.19 (0.30%) $0.23
Gilead Sciences, Inc. Stock Quote
Gilead Sciences, Inc.
$63.84 (0.90%) $0.57

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.