After a jury ruled that Merck's (MRK) nucleotide patents are valid, RBC Capital says the ruling means that Gilead's (GILD) Sovaldi/Harvoni drug may be infringing on the patent, and that Gilead may have to pay financial damages including royalties to Merck. Nonetheless, RBC estimates that in a worst case scenario, Gilead's stock would only drop by about 5% as a result of these developments. The firm expects Gilead to appeal the ruling, and it notes that Merck is not seeking a ban on Gilead's infringing products. RBC keeps an Outperform rating on Gilead.