Gilead strikes deal with 5 generic firms to expand remdesivir supply

Gilead has reached agreements with five generic companies: Cipla, Ferozsons Laboratories, Hetero Labs, Jubilant Lifesciences and Mylan to further expand the supply of remdesivir. The agreements follow on the heels of the Food and Drug Administration granting emergency authorization for remdesivir in the United States as a treatment for hospitalized patients with severe COVID-19 symptoms.

The generic companies will manufacture remdesivir for distribution in 127 countries. The countries consist of nearly all low-income and lower-middle income countries, as well as several upper-middle- and high-income countries that face significant obstacles to healthcare access.

B. Partha Saradhi Reddy, Hetero Group chairman said, "Hetero is pleased to partner with Gilead to enable access for this important drug to India and other developing countries at this crucial time. This agreement also illustrates the significance of global collaboration and the need for coming together to fight the health crises impacting humanity. Hetero has developed this product in India and has already been working with the government, ICMR, and DCGI for necessary studies and approvals to bring this product to treat COVID-19 patients in India." 

Under the licensing agreements, the companies have a right to receive a technology transfer of the Gilead manufacturing process for remdesivir to enable them to scale up production more quickly. The licensees also set their own prices for the generic product they produce.

The licenses are royalty-free until the World Health Organization declares the end of the Public Health Emergency of International Concern regarding COVID-19, or until a pharmaceutical product other than remdesivir or a vaccine is approved to treat or prevent COVID-19, whichever is earlier.