Zydus Cadila is the fifth company in India and the sixth company in the world to have signed a licensing agreement for Gilead`s new intravenous drug: «I expect Remdesivir to be available worldwide at the same time if evidence continues to support the use of Remdesivir in the treatment of COVID 19. Global launches are a common practice in the pharmaceutical industry. The agreements are officially referred to as non-exclusive voluntary licences, which is a similar approach Gilead has taken in the past in response to pressure to expand access to its hepatitis C drugs. In this case, the cases mainly concern low- and middle-income countries, but also some middle- and high-income countries, which Gilead said faced with significant barriers to access. «Remdesivir`s manufacturing costs are not known to the public. Based on the information contained in its production statement and the need for sterile facilities, the costs are expected to be quite high. However, the cost of production is not the only problem to be taken into account when setting the prices of a new product. Most drug manufacturers bear the costs of research and development not of one, but many potential assets, and many of them are never put on the market. To ensure that they can remain a «current business,» manufacturers must be able to bear all these costs, pay a dividend to their investors and generate additional money for new research and development activities. As a result, the cost of a drug that reaches the market always exceeds the cost of manufacturing alone (including non-patentable drugs). However, because market forces are in place, 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 United States will be 2340 $US.

Meanwhile, an academic expressed disappointment at what he called a lack of global coverage, as licensing agreements make it unlikely that the Indian government will issue so-called mandatory licenses to allow other companies to produce and export versions of Remdesivir. Under a World Trade Organization agreement, governments can license such a public body or generic drug manufacturer to copy a patented drug without the approval of the brand name company that holds the NEW DELHI patent: Zydus Cadila announced Friday that it has signed a non-exclusive licensing agreement with Gilead Sciences Inc. for the manufacture and sale of the highly promising drug Covid 19. Although Gilead has already granted voluntary licenses for some of its other generic drugs, the company has always been criticized for simply not going far enough, as some countries with struggling health systems have been excluded. But as I said before, a new management team is trying to be ahead of the critics by following large-scale agreements with Remdesivir. For Sofosburvir, there were finally 11 companies that signed a licensing agreement for the drug to distribute it in 101 countries. As part of the re-employment agreement, Gilead will transfer its technology to how the API and formulations are also developed to companies. These companies can in turn manufacture, lease and sell either the API or the API and the formulation.