NEW YORK, March 3 (Reuters) - Gilead Sciences ( GILD )
set aside $200 million for a potential settlement with federal
prosecutors to resolve an investigation into the drugmaker's
promotional speakers program for HIV drugs.
The Foster City, California-based company disclosed the
potential resolution with the Manhattan U.S. Attorney's office
in a Friday afternoon securities filing.
Gilead said it had received a subpoena in 2017, but did not
provide additional details about the probe in its filing.
The company, which first disclosed the probe in 2018, said
in a statement on Monday: "We have taken a litigation accrual
for a potential settlement."
A spokesman for the Manhattan U.S. Attorney's office
declined to comment.
Promotional speaker programs in which doctors are paid by
drugmakers to deliver lectures about their products have drawn
past Justice Department scrutiny.
In 2020, Swiss drugmaker Novartis paid more than
$600 million to settle with the Manhattan U.S. Attorney over
claims its speaker program was a cover for paying bribes to
doctors to prescribe its medication.
Novartis at the time said it was "committed to doing what is
right" and had established an enhanced compliance framework.
Gilead's HIV drug sales rose 16% to $5.45 billion in the
fourth quarter of 2024, contributing to a surge in its share
price.
The company expects to launch a new drug, lenacapavir, for
protecting against HIV infection later this year.