This story is from August 6, 2014

New Hepatitis-C drug 99% cheaper in India

US pharma firm Gilead Sciences has offered to introduce Sovaldi, the first breakthrough treatment for hepatitis C virus, in India at nearly 99% discount of the US price.
New Hepatitis-C drug 99% cheaper in India
MUMBAI: There is some hope for hepatitis C patients in India. Amid mounting criticism over the eye-popping price of Sovaldi, the first breakthrough treatment for hepatitis C virus, US pharma firm Gilead Sciences has offered to introduce the drug in India at nearly 99% discount of the US price.
The blockbuster hepatitis C drug will cost about $900 (around Rs 54,000) in India for a 12-week course of treatment.
That would be a fraction of the $84,000 (over Rs 50 lakh) price tag for the same treatment in US.
Gilead Sciences will adopt a tiered pricing structure here, like the one for HIV treatment in developing countries like India.
“The pricing of Sovaldi in India at $300 per bottle, is our low income pricing, similar to the price negotiated with Egypt for its government-run programme. We hope with local production by our partners in India, higher volumes and continued research & development on the drug will lead to a further reduction in prices at a later stage”, Gregg Alton, executive V-P (corporate & medical affairs), Gilead Sciences told TOI in a telecon from the US.
“We have set three basic pricing tiers (based on a country’s per capita income and hepatitis C prevalence) that serve as the starting point for negotiations with national governments. The tiers are low-income, low middle-income and upper-middle income,” Alton said.
The pricing and launch of the breakthrough treatment of hepatitis C is crucial for India, which has one of the highest incidence of the virus, with over 12 million chronically infected, according to WHO.

However, even at $900, many patients will still not be able to afford the therapy in India. The cost will escalate for those who are prescribed a six-month treatment.
Alton said existing treatment in India is more expensive than the one his company will offer. Also, Sovaldi prices are expected to fall with generic competition and local manufacture.
Existing hepatitis C treatment in India is expensive (Rs 3,75,000 or $6000), complex (24-48 weeks of injectables) and has serious side-effects.
Gilead also plans to license its new therapy to Indian generic manufacturers, who will then supply lower cost versions of the drug in the country, and across global markets. It is in talks with its HIV drug pasrtners -- Ranbaxy, Mylan, Strides Arcolab -- to finalise an agreement for Sovaldi. The licensee agreements could be finalised by September, Alton said.
At present, the company has initiated clinical trials of the drug in India, with results expected in 2015-end. While Gilead Sciences has applied for multiple patents in India on sofosbuvir, even before its grant the company is already embroiled in a fight. A patient group, Delhi Network of Positive People, and UK-based intellectual property law firm, Initiative for Medicines Access and Knowledge, have together filed an opposition to prevent Gilead from gaining a patent in India.
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About the Author
Rupali Mukherjee

A business journalist with around two decades of experience tracking key consumer-focussed sectors like consumer durables, retail, consumer goods, aviation, automobiles and advertising, as well as economic ministries of the Union government. Now, writes primarily on pharmaceuticals and healthcare, and on issues of consumer interest. Besides also looks at trends that are shaping consumer behaviour and the broad consumer landscape. \nYou can follow Rupali on Twitter@Rupalijee.

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