California Appeals Court Ruling Could Open New Wave of Lawsuits for Drug Companies

Published on January 18, 2024

California businesses could now face legal action for failing to develop an improvement on an existing product, after a Jan. 9 ruling by an appeals court affirmed a California-based pharmaceutical company delayed introducing a safer version of an HIV drug, which petitioners in a lawsuit alleged was due to maximizing profits. Gilead Sciences, a global biopharmaceutical company based in Foster City, in the San Francisco Bay Area’s southeast region, received approval from the Food and Drug Administration (FDA) in 2001 for a life-saving HIV medication, which helps reverse and prevent damage to the immune system for those with AIDS-related illnesses. Some 24,000 patients claimed the company should have launched the safer version of the medication that produces fewer side effects to the bones and kidneys sooner....

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