Gilead Sciences counts on Indian pharma companies

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New Delhi May 13

Despite a pre-grant challenge to its Indian patent application due to be heardsoon, the California-based Gilead Sciences is hopeful of making its licence agreements with 10 Indian companies for its HIV drugs, the model for marketing other drugs in the future.

"Making drugs for life threatening diseases available to resource constrained sub-Saharan African countries has been a particular challenge for western companies. We believe that Indian pharma companies with their cost advantage, manufacturing capacities and distribution can help our drugs reach these markets," Mr Gregg Alton, Senior Vice-President and General Counsel, Gilead Sciences told Business Line.

New Model

The agreements entered into since last September cover two drugs, Emtriva (emtricitabine) and Viread (tenofovir disoproxil fumarate), and allows the Indian partners, which include Aurobindo Pharma , Hetero Drugs, Matrix and Ranbaxy to make any combination of the drugs and more importantly, fix the market price.

Gilead, which gets a five per cent royalty, is hopeful of seeing the Indian drugs reach markets in the next three to six months. If the model is successful, it hopes to replicate it around the world and for other drugs in the future.

Gilead is keen to point out that the agreement with Indian pharma companies also covers technology transfer of the API and the finished antiretrovirals. "The rationale behind multiple partners is to see a high-volume, low-margin business for these drugs," said Mr Alton.

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