Voluntary Licensing Agreements For Remdesivir

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“The cost of producing remdesivir is not known to the public. Based on the information contained in their explanation of manufacturing and the need for sterile equipment, the cost is likely to be quite high. However, manufacturing costs are not the only issue to consider when pricing a new product. Most drug manufacturers bear the cost of research and development of not one, but many potential active ingredients, and many of them are never marketed. To ensure that they can remain a “going-to-well” business, manufacturers must be able to bear all these costs, pay a dividend to their investors, and generate additional funds that enable new research and development activities. As a result, the cost of a drug entering the market always exceeds manufacturing costs alone (even for patented medicines). However, since market forces apply, costs must be set at a level that payers are willing to pay. Gilead announced that the cost of a Remdesivir course (6 vials) in the U.S. will be 2340 $US. “We understand that we are not yet able to meet the real-time demand for [Remdesivir] in any corner of the world,” Gilead CEO Daniel O`Day said at a virtual press conference hosted Thursday by the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA). To ease concerns about access to its remdesivir treatment for Covid-19, Gilead Sciences (GILD) has signed contracts with five generic drug companies in India and Pakistan to produce the investigational drug and distribute it in 127 countries. “What we need is a coordinated global supply chain.

Raw materials [for remdesivir] must be properly managed. in a way that meets the standards of patients, wherever they are in the world,” he added, although he did not specify the exact bottlenecks that the supply chain has experienced. Gilead has signed non-exclusive licensing agreements with generic manufacturers in Egypt, India and Pakistan to further develop Remdesivir`s offering. Agreements allow companies – Cipla Ltd.; Dr. Reddy`s Laboratories Ltd. Eva Pharma; Ferozson Laboratories; Hetero Labs Ltd. The jubilant sciences of life; Mylan; Syngene, a biocon company; and Zydus Cadila Healthcare Ltd. – for the manufacture of remdesivir for distribution in 127 countries. Countries are made up of almost all low- and low-middle-income countries, as well as several middle- and high-income countries, which face significant barriers to accessing health care.

The regulatory approval status of Remdesivir varies from country to country, and the distribution of remdesivir in each of the countries listed below is subject to local laws and regulations. According to Peter Liese, this is not fast enough and he is threatening to introduce a compulsory license, which means that the drug would be produced by others against Gilead`s will. The parliament said this was technically feasible, as the company must indicate all the necessary production details in its patent filing file. At present, Gilead Remdesivir has obtained a “free” license from nine generic drug manufacturers and has supported technology transfer for these selected producers. . . .

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