900 Products Liability – No Duty to Innovate (2026)

In Gilead Tenofovir Cases, Case No. S283862, 2026 WL 2223748 (Cal. Aug. 3, 2026) the California Supreme Court issued its decision, rejecting the so-called “duty to innovate.” The court held, in a 6-1 decision, that “a drug manufacturer has no duty of care when deciding whether and when to develop and commercialize an allegedly safer alternative drug” to replace an admittedly non-defective drug.

The case arose from a Judicial Counsel Coordination Proceeding comprising more than 30,000 plaintiffs — HIV patients who took Gilead’s tenofovir disoproxil fumarate (TDF). Plaintiffs did not claim TDF was defective; it is undisputedly a life-saving medication. Instead, they alleged Gilead unreasonably delayed bringing an alternative medication, tenofovir alafenamide (TAF), to market, depriving them of a purportedly safer option and allegedly causing kidney, bone, or tooth injuries.

The trial court denied Gilead’s summary judgment motion on the negligence claim, and the court of appeal affirmed, holding that a manufacturer’s duty of care could extend beyond marketing a non-defective product. See Gilead Tenofovir Cases, 98 Cal. App. 5th 911 (2024). The California Supreme Court reversed.

The California Supreme Court expressed “substantial doubt” that California law recognizes a negligence duty requiring drug manufacturers to act reasonably in development and commercialization decisions apart from their established duty to market products free from manufacturing, design, and warning defects. But even assuming such a duty could exist, the court held that foreseeability, and public policy factors warranted an exception.

On foreseeability, the court reasoned that a manufacturer cannot determine a drug’s safety and efficacy during early-stage clinical testing, making harm from development delays unforeseeable. It also found the causal chain between purported development delays and a patient’s injury attenuated, as it depends on uncertain scientific outcomes and independent decisions by regulators, physicians, and patients.

On public policy, the court held that moral blame is not meaningfully implicated given the morally neutral reasons that may underlie development decisions. The court further found that imposing such a duty would risk distorting research priorities, discouraging innovation, and inviting hindsight-based second-guessing of complex scientific judgments — while imposing substantial burdens on manufacturers.