Gilead Talks With Generic Drug Makers On Low-Cost Version Of Sovaldi

By Cyndi Root

Gilead Sciences is talking with generic drug makers to bring a low-cost version of Sovaldi for Hepatitis C to developing countries, according to Bloomberg. Gregg Alton, an EVP for Gilead, said that Gilead is in talks with several companies and hopes to ink licensing deals with contenders as early as mid-September. Mr. Alton said that involving multiple companies is critical to ensure enough supply. He said, “We are talking to five or six companies right now and we will see whether all six sign a license with us.”

Sovaldi Generic Deals

Among the companies purported to be in discussions with Gilead are Mylan, Hetero Drugs, and Cipla. Yusuf Hamied, Cipla Chairman, confirmed that Cipla was talking with Gilead and that there should be plenty of business for several partners. Mylan and Hetero opted not to comment about any potential deals. Hamied said that final terms for the agreement were not available, though Alton stated that partners will pay single-digit royalties on sales of Sovaldi. Over 80 countries may receive the low cost generic version — up from 60 in Gilead’s original plan. Those countries may include South Africa, Vietnam, Egypt, Mongolia, India, Indonesia, and Pakistan.

The agreement for generic manufacturing and distribution of Sovaldi would be similar to another Gilead program for low-cost HIV drugs in low-income companies. That licensing program has been in place since 2006, giving Gilead the experience to roll out Sovaldi generics. Alton said that despite the fast-moving deal-making, the product will not be available immediately, as the generics must pass regulatory hurdles in each country.

Sovaldi Price

The price for the generic Sovaldi is not determined yet. Alton did say though, that the Egyptian government secured 12 weeks of branded Sovaldi for $900, and that price may be the benchmark. Gilead may sell branded Sovaldi in some countries at the $900 price point for 12 weeks. The drug goes for $84,000 for 12 weeks in the U.S., which has aroused ire from patients, insurance companies, and government representatives. Given the fact that questions keep arising about the pricing of the drug, it would seem that Gilead still has some answering to do. Mr. Alton said that people are looking for internal documents that may reveal high-level discussions on price, but those documents are “not there.” He said Gilead did not base the price on R&D costs or acquisition costs. Rather, he said, Gilead based the Sovaldi price on older regimes, and the new regime costs the same as the old one.