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July 13, 2011

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Generic drugs for AIDS deal is reached

Gilead Sciences Inc will allow some of its AIDS drugs to be made by generic manufacturers, potentially increasing their availability in poor countries, particularly in Africa, officials said yesterday.

In the first deal of its kind, the pharmaceutical company has agreed to allow four of its AIDS drugs to be made by generic drug companies at a cheaper cost in return for a small proportion of royalties, United Nations health officials said. Gilead is one of the world's biggest producers of AIDS drugs.

Most of the 33 million people worldwide who have HIV, the virus that causes AIDS, live in Africa. One of the drugs will also be used to treat people with hepatitis.

The deal was negotiated by the Medicines Patent Pool, part of a UN-led partnership that raises money for AIDS, tuberculosis and malaria by things like taxing airplane tickets. Among the partnership's 29 member countries, only Chile, France, South Korea, Mali and Niger are actually implementing the airline tax.

Last year, the US National Institutes of Health allowed one of its patented drugs to be made generically via the same group, but this was the first deal with a private company.

"We will continue to work with Gilead and others to expand access to all people living with HIV in developing countries," said Ellen 't Hoen, executive director of the Medicines Patent Pool.

Several other pharmaceutical companies, including F. Hoffman-La Roche, Sequoia Pharmaceuticals and ViiV Healthcare, a joint venture between GlaxoSmithKline PLC and Pfizer Inc, are in talks with the group.

Gilead will receive from 3 to 5 percent royalties on its four drugs, which will be supplied to about 100 countries.




 

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