Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Gilead Sciences, Inc.    GILD


SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

EU seeks to bypass patents to boost drugs access in crises

11/25/2020 | 02:49pm EST
EU Commission publishes pharmaceutical strategy

BRUSSELS (Reuters) - The European Union is planning bold measures to boost its access to drugs, from sidestepping patent rights in emergencies to offering incentives for companies to shift production to Europe, according to EU documents published on Wednesday.

The possible moves are meant to tackle the chronic shortages of medicines that have dogged the bloc for years and have become more serious since the COVID-19 pandemic and its associated trade disruptions and drug export bans.

The European Commission wants faster procedures during crises to produce generic versions of drugs in EU states without the consent of patent holders, an EU document says.

So-called compulsory licensing is allowed under World Trade Organization (WTO) rules in emergencies as a waiver of normal regulations and could be applied during the COVID-19 pandemic.

"The Commission sees the need to ensure that effective systems for issuing compulsory licences are in place, to be used as a means of last resort and a safety net, when all other efforts to make IP (intellectual property) available have failed," the first of Wednesday's documents said.

Ironically, the proposal is part of an EU action plan on intellectual property that is mostly aimed at strengthening the protection of EU companies' patents against foreign actors.

"Compulsory licensing is not an effective policy tool to create access and puts at risk any incentive to invest in medical innovation at a time when citizens across Europe, across the world, are looking to the life science community to find the answers to the coronavirus crisis," EFPIA, the body representing the largest players in the European pharmaceutical industry, said in a statement on Wednesday.

In the first months of the COVID-19 pandemic, lawmakers and activists had urged the EU to use the WTO waiver to gain access to potential vaccines and drugs against the new coronavirus, which have mostly been developed outside the 27-nation bloc.

The EU initially struggled to order large volumes of the antiviral drug remdesivir, which some studies have shown to be effective against COVID-19, because nearly all stocks of the drug produced by Gilead had been ordered by the United States.

Though the EU executive has so far refused to invoke the WTO waiver and has struck multibillion-euro deals with drugmakers to secure COVID-19 shots and therapeutics, the pandemic has led to a reconsideration of existing procedures that largely fall under the remit of national governments in the bloc.


"The Commission calls on member states to ensure that the tools they have are as effective as possible; for instance, by putting in place fast-track procedures for issuing compulsory licences in emergency situations," the document says.

To avoid distortions to trade and innovation, the Commission is also considering creating an emergency coordination mechanism that would be triggered at short notice when an EU government wants to issue a compulsory licence.

The move differs from proposals from South Africa and India to pre-emptively waive WTO intellectual property rules during the pandemic - proposals the EU has said are too drastic.

The Commission said in a second document that, after a consultation process with pharmaceutical companies next year, it will make proposals aimed at addressing vulnerabilities in global supply chains.

That could lead to incentives, or other less benign measures, to persuade manufacturers to move production of medicines to Europe from China and India, on which the EU relies heavily for medical imports.

The Commission said it was important "to assess whether manufacturing capacity for certain critical medicines may be required in the EU", adding that any action would be in line with WTO rules.

"We need to be able to rely on ourselves, not on others," the Commission's vice-president, Margaritis Schinas, told a news conference, emphasising the 27-nation bloc's need for "strategic autonomy" on drugs.

To avoid disruptions, drugmakers will also be subjected to stricter requirements on supply obligations and disclosure of stock levels under proposals due in 2022.

The possible measures are part of a wider EU strategy published on Wednesday. The plans aim to increase access to cheap medicines and boost competition - including through broader use of generics that could hit revenues of large drugmakers - in line with a Reuters report earlier this week.

(Reporting by Francesco Guarascio @fraguarascio; Editing by David Goodman)

By Francesco Guarascio

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
DOW JONES AFRICA TITANS 50 INDEX 0.22% 542.33 Delayed Quote.1.18%
DOW JONES SOUTH AFRICA(ZAR) 0.28% 1879.64 Delayed Quote.6.28%
GILEAD SCIENCES, INC. 1.07% 67.785 Delayed Quote.15.12%
S&P AFRICA 40 INDEX 0.77% 177.07 Delayed Quote.0.47%
All news about GILEAD SCIENCES, INC.
05:54aGILEAD SCIENCES : Company - Francesco M. Marincola Joins Kite as Worldwide Head ..
01/19Gilead Sciences Up Nearly 7%, Best Performer in the Nasdaq 100 So Far Today -..
01/19STREET COLOR : SCOTUS Refuses to Hear Merck's Bid to Revive $2.5 Bln Patent Infr..
01/19GILEAD SCIENCES : U.S. Supreme Court rebuffs Merck appeal in hepatitis C patent ..
01/19GILEAD SCIENCES : U.S. Supreme Court rebuffs Merck appeal in hepatitis C patent ..
01/19U.s. supreme court refuses to hear merck & co bid to revive $2.5 billion pate..
01/19GILEAD SCIENCES : Francesco M. Marincola Joins Kite as Worldwide Head of Cell Th..
01/19GILEAD SCIENCES : Morgan Stanley Upgrades Gilead Sciences to Overweight From Equ..
01/15STRIDES PHARMA SCIENCE : Arm Gets US FDA Nod for HIV/AIDS Treatment Drug
01/13GILEAD SCIENCES : Statement on Recent Events in Washington, D.C.
More news
Financials (USD)
Sales 2020 24 243 M - -
Net income 2020 39,3 M - -
Net Debt 2020 24 871 M - -
P/E ratio 2020 9 650x
Yield 2020 4,03%
Capitalization 84 074 M 84 074 M -
EV / Sales 2020 4,49x
EV / Sales 2021 4,34x
Nbr of Employees 11 800
Free-Float 99,9%
Duration : Period :
Gilead Sciences, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GILEAD SCIENCES, INC.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 32
Average target price 72,61 $
Last Close Price 67,07 $
Spread / Highest target 49,1%
Spread / Average Target 8,26%
Spread / Lowest Target -13,5%
EPS Revisions
Managers and Directors
Daniel P. O'Day Chairman & Chief Executive Officer
Andrew D. Dickinson Chief Financial Officer
William A. Lee Executive Vice President-Research
Merdad V. Parsey Chief Medical Officer
George Pratt Shultz Director-Emeritus
Sector and Competitors
1st jan.Capitalization (M$)
WUXI APPTEC CO., LTD.14.44%53 987
BEIGENE, LTD.38.04%32 523
GENMAB A/S10.03%28 876