The Hindu Business Line : Gilead Sciences counts on Indian pharma companies

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.

Pending patents

The 23-year-old, 2,000-employee company has multiple patents pending with the Indian Patent Office and is hopeful of winning the challenged patent application of Viread, which according to the company, is used in the treatment of 80 per cent of new HIV patients. Cipla sells its own generic version of the drug.

"The patent has been granted throughout the world and we have never had a third party challenge," said Mr Alton, adding that Gilead believed in responsible use of the Intellectual Property Right and an approval will not just encourage the research-based companies to do business in India, but also encourage R&D in India.

Indian production is expected to be distributed in 94 countries in Africa, East Asia and Central Europe, which account for 95 per cent of HIV prevalence. The company also hopes Cipla will enter into a similar agreement with them despite the pre-grant opposition.

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