California Supreme Court Rejects Duty to Innovate Claim Against Gilead

The California Supreme Court ruled 6‑1 that drug manufacturers do not owe a duty to innovate, dismissing negligence claims against Gilead Sciences brought by an estimated 24,000 HIV patients over the company's decision to stop developing a less‑side‑effect drug.

Justice Joshua Groban wrote that imposing such liability would burden juries with complex scientific judgments and could harm pharmaceutical innovation, public health and patient safety. The decision overturns a February 2024 appellate ruling and may reshape product‑liability law for the pharmaceutical industry.

Gilead called the ruling a victory for those developing new medicines; HIV drugs made up about 70% of its $29.4 billion revenue last year. Shares fell 0.2% after the decision. Dozens of trade groups and companies, including Bayer, Bristol‑Myers Squibb, Eli Lilly, Johnson & Johnson, Merck and Pfizer, supported Gilead’s appeal.