Tuesday, 24 February 2009

Access to Drugs: Gilead's non exclusive model

American bio-pharmaceutical major Gilead, that has entered into generic licensing deals with 10 Indian pharma firms to distribute its HIV drug Viread, is all set to roll out its key anti-AIDS drugs at affordable prices in India and 94 other resource-limited countries through its unique licensing model according to this article in The Hindu.

"Under the model, Gilead has issued non-exclusive licences to the manufacturers to sell generic versions of the key anti-AIDS drugs Viread and Truvada, charging a five per cent royalty on sales of finished products.

"The policy of allowing these companies to compete amongst each other will drive prices down to the benefit of consumers. The low royalty being charged by Gilead is also a key factor for the low pricing to be achieved by the Indian generic manufacturers," Gregg Alton, Gilead's senior vice president and general counsel, told IANS.

"The agreements include a full technology transfer, to enable faster ramp-up of production of high quality product, and allow the generic companies to manufacture commercial quantities of both active pharmaceutical ingredient (API) and finished products," Alton said in an interview. "

In hebrew Gilead can mean eternal joy, is their licensing model reason to hope so?

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