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P.T. Jyothi Datta

AIDS activists express concern over `generous' deals

Mumbai , Aug. 15

Is it for better access to medicines or is there more than that meets the eye? That's the concern expressed by AIDS-advocacy groups, as innovator pharma companies increasingly join hands in "generous" deals with Indian generic drug-makers.

The most recent such deal is California-based Gilead Sciences' agreement with Indian companies Emcure Pharmaceuticals, Hetero Drugs and Strides Arcolabs to make generic versions of Viread, an anti-AIDS drug.

More deals

Gilead said, on Monday, that it had signed a non-exclusive license agreement with Emcure, Hetero and Strides. The three generic companies would make and distribute generic or chemically-equivalent versions of Viread to 95 low-income countries around the world, including India. It is not clear if a royalty is involved.

Viread is the brandname for Gilead's tenofovir disoproxil fumarate. It had sales of $778.8 million in 2005. Gilead also has a patent application on Viread in India, Gilead's spokesperson confirmed with Business Line, when the deal was under discussion.

Gilead indicates more such deals with Indian companies are in the pipeline. Reports say similar agreements could follow on Gilead's AIDS drugs Truvada and Atripla. Representatives with AIDS-advocacy groups, however, caution that such deals conceal more than they tell to blunt competition from large Indian generic drug companies.

They fear the fine print could be restrictive on bulk-ingredient procurement and export options.

Lower prices?

What happens if Gilead gets a patent on Viread in India, questions an AIDS-activist. Responding to these concerns, Gilead spokesperson said: "In terms of what Gilead hopes to gain from these agreements, we believe that increased competition will result in lower ARV (anti-retroviral or AIDS-drugs) prices in the developing world and thus, greater and broader access for patients in need."

The Gilead agreement is the second such deal for Pune-based Emcure, after a similar high profile AIDS deal with Bristol Myers Squibb (BMS) about five months ago. Emcure had signed a royalty-free technology-transfer deal with BMS to make aids-drug Atazanavir for India and the African countries.

Mr A.K. Khanna, Emcure's Director-Operations, says that the BMS and Gilead agreements are exciting deals. Emcure has recently launched Atazanavir in India at Rs 4,000 per month, about three times the international cost and exports will commence shortly, he added.

Related Stories:
Gilead's AIDS drug patent faces patient networks' opposition
AIDS drugs cheaper as cos pass on benefits

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