Roche and Gilead Sciences ended their dispute over Tamiflu (oseltamivir) production and royalties, as they agreed on a new plan to meet worldwide demand for the drug.
Under the agreement, Gilead will get the option to co-market Tamiflu in certain areas in the U.S. The firm also will receive $62.5 million in retroactive royalty adjustments from Roche. The agreement doesn't change Gilead's royalty, which will range from 14% to 22%, depending on sales volumes, the companies said. Gilead expects its royalty for the year to be about 18% to 19%.
Another $18.2 million that had been paid by Roche for the 2001-2003 period will be kept by Gilead. The two firms also will set up a joint committee to oversee coordination of global manufacturing of the antiviral drug and a panel for the commercialization of the drug for seasonal sales in important markets.
In June Gilead, which invented Tamiflu in 1996, had accused Roche of not doing enough to promote and produce it and invoked a contract clause to demand the return of all commercial and manufacturing rights. Roche has denied the charges.
Roche owns all commercial rights and manufacturing responsibility.
Meanwhile, Japan's Health Ministry warned that use of Tamiflu could induce strange behavior leading to accidental death, following the deaths of 12 children who took the medicine.