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Gilead's Investigation Reveals Two Kingpins Directly Associated With Fake HIV Medications Scheme

Vandana Singh
September 29, 2022
  • U.S. District Judge Ann Donnelly has ordered to freeze several assets related to people and entities accused of operating a U.S. supply chain that distributes counterfeit bottles of Gilead Sciences Inc's (NASDAQ:GILD) HIV drugs.
  • In a statement, Gilead has identified and named as defendants two individuals responsible for leading and orchestrating the counterfeit scheme. The company initiated this litigation in July 2021 to halt the distribution of counterfeits.
  • A court filing uncovered an operation that was "staggering in scope," responsible for selling hundreds of millions of dollars of counterfeit bottles of its top-selling Descovy, Genvoya, Biktarvy, and other medicines.
  • Reuters reported that in addition to the alleged kingpins, the case now includes alleged mid-level leaders and a complex web of shell companies, distributors, and pharmacies.
  • Gilead's investigation revealed that these two kingpins directed the initial sale of the counterfeits through suppliers created solely to sell counterfeit medications.
  • The company alleged that the counterfeiters sold its HIV drugs with falsified documentation, altered packaging, and wrong pills, including an OTC painkiller and an antipsychotic drug instead of the HIV medications.
  • Price Action: GILD shares closed at $63.93 on Wednesday.

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