NEW YORK—Biotechnology company Gilead Sciences Inc. said late Tuesday the U.S. Patent and Trademark Office upheld one of four key patents for its HIV drug Viread.
The decision is part of an ongoing process after the Patent Office rejected four patents covering the drug in January as part of a challenge by the nonprofit Public Patent Foundation. The drug contributes the least to revenue from the Foster City,Calif.-based company's HIV franchise but is part of the once-daily, three-in-one combination treatment Atripla, which combines Viread and Emtriva in combination with Bristol-Myers Squibb Co.'s Sustiva.
The remaining patents are still in effect while under review.
In a note to investors, Lehman Brothers analyst Dr. Jim Birchenough reaffirmed his "Overweight" rating on the Gilead and said the Patent Office will likely reaffirm the remaining three patents.
"With some concern regarding the patent reexamination prompted by the Public Patent Foundation challenge claiming prior art we believe that today's Patent Office ruling should provide a measure of relief for Gilead investors," he said, in a note to investors.
The Public Patent Foundation is claiming that prior art existed that would have affected the issuance of the original patents.
Piper Jaffray analyst Thomas Wei said the remaining three patents in dispute are still important, but the next decision will also likely be in Gilead's favor. He reaffirmed a "Buy" rating on the stock.
Gilead shares fell $1.30, or 2.5 percent, to $52.54 in afternoon trading. The stock has traded between $35.22 and 54.59 over the last 52 weeks.
