Case Study

Patent Damages – Pharmaceuticals

$1 billion
Jury Verdict
District of Delaware
U.S. Federal Court
–
Tried to a Jury
1Overview

Dr. DeForest McDuff, Ryan Penkowski, and their team provided reasonable royalty damages analysis and expert testimony in high‑stakes pharmaceutical patent litigation between the United States government and Gilead Sciences involving the HIV pre‑exposure prophylaxis (PrEP) therapies Truvada and Descovy. The case, tried in the District of Delaware, focused on government‑owned patents covering CDC‑developed PrEP methods and the value of Gilead’s use of those patents in its blockbuster HIV prevention drugs. This matter highlights the specialized expertise of Dr. McDuff, Mr. Penkowski, and their team in pharmaceutical and life sciences patent damages for high‑revenue therapies.

2The Challenge

Valuing government-owned patents behind a blockbuster therapy

Dr. McDuff, Mr. Penkowski, and their team were asked to quantify reasonable royalty damages for HIV prevention drugs with substantial sales where the patent holder was a public institution rather than a private company. The assignment required detailed analysis of Truvada and Descovy profitability, industry‑standard R&D investment, license agreements, and market dynamics for branded PrEP medications. Insight’s team translated complex economic and scientific issues into clear, jury‑ready opinions tailored to pharmaceutical and life sciences IP litigation.

2Our Approach

A royalty grounded in profits, R&D, and comparable licenses

3The Outcome

Testimony supporting more than $1 billion in reasonable royalties

Dr. McDuff testified at trial in the District of Delaware in support of more than $1 billion in reasonable royalty damages tied to Gilead’s HIV prevention sales. The analysis provided a robust framework for valuing patented pharmaceutical technology in the context of branded drug profits, government‑funded research, and comparable licensing in the biopharmaceutical sector. The case settled after a jury finding on liability issues.

Case Experts
Ryan Penkowski, CPA
Ryan Penkowski, CPA
Managing Director
DeForest McDuff, Ph.D.
DeForest McDuff, Ph.D.
Managing Director

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