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GILEAD SCIENCES, INC. 8-K Report, Material Agreement (Dec 13, 2007)

Filed December 13, 2007For Securities:GILD

Summary

This 8-K filing from Gilead Sciences, Inc. (GILD) reports the execution of a Material Definitive Agreement, specifically a Commercialization Agreement with Bristol-Myers Squibb Company (BMS) dated December 10, 2007. This agreement outlines the terms for co-commercializing ATRIPLA® (efavirenz/emtricitabine/tenofovir disoproxil fumarate) in the European Union and other specified European territories. The co-commercialization plan involves both Gilead and BMS marketing and promoting ATRIPLA, with specific arrangements for sole promotion in certain countries and potential use of third-party distributors. Gilead will coordinate manufacturing and distribution logistics, while sales responsibilities will be divided per country. The agreement stipulates a revenue and expense sharing model based on the net sales of Truvada® and efavirenz, respectively, and will remain in effect until the expiration of the last patent providing market exclusivity for ATRIPLA in the European Territory.

Key Highlights

  • 1Gilead Sciences entered into a Commercialization Agreement with Bristol-Myers Squibb (BMS) on December 10, 2007.
  • 2The agreement focuses on the co-commercialization of ATRIPLA® in the European Union, Norway, Iceland, Switzerland, and Liechtenstein.
  • 3Both Gilead and BMS will generally have the right to market and promote ATRIPLA in the designated European Territory.
  • 4In specific countries, one party may act as the sole promoter until the other establishes a sufficient presence.
  • 5Gilead will be responsible for manufacturing coordination and distribution logistics for ATRIPLA.
  • 6Revenues and out-of-pocket expenses will be shared proportionally based on the net sales prices of Truvada® (for Gilead) and efavirenz (for BMS).
  • 7The agreement's duration is tied to the expiration of the last patent granting market exclusivity for ATRIPLA in the European Territory.

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