BUSINESS
US-based pharmaceutical giant Gilead Science’s in-licensing deals with eight Indian pharmaceutical players within a month for its AIDS drug.
MUMBAI: US-based the pharmaceutical giant Gilead Science’s in-licensing deals with eight Indian pharmaceutical players within a month for its AIDS drug, Tenofovir, is likely to hit market leader Cipla in the country.
Gilead has in-licensed its molecule to Matrix Laboratories, Aurobindo Pharma, JB Chemicals, Alkem, Shasun Chemicals, Strides Acrolab, Emcure and Hetero Drugs.
According to the deals, the companies would have access to Gilead’s technology to manufacture and sell Tenofovir in 95 countries including India.
Cipla, which is also marketing Tenofovir in India, is expected to reduce its price to maintain its lead in the domestic AIDS drugs market, where the competition has become intense due to the fall-out of in-licensing deals.
“Each company, with whom Gilead signed the in-licensing deals, is likely to reduce the prices to compete in the market. As the result, Cipla, the major player in the AIDS drug market, will also be forced to reduce the price to face the competition,” a pharma analyst said.
“Its move to sign more in-licensing deal is said to be calling a proxy war against Cipla, who opposed the patent application of Tenofovir in India.”
Indian AIDS patients will benefit from the price battle, he said. Cipla officials were unavailable for comments.
Gilead, which announced it would supply Viread (Tenofovir) in India with a cost lower than $1/day, is also said to be in talks with two more companies for in-licensing the Tenofovir molecule.
The patent application on Viread is currently facing a challenge from the Delhi Network of Positive People, operating under the Indian Network of People Living with HIV/AIDS.
Another advantage for Gilead in signing the deals is that the licensees cannot market the drug beyond the 95 countries mentioned in the agreement and will have to leave aside the developed countries,where Gilead itself is marketing it.
This will help Gilead to earn royalty as well as to deflect any competition from licensees. Viread registered sales of $359.2 million for the six months ended June 30. Gilead has a global patent till for Viread till 2018.
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