Ranbaxy and Mylan unit to make and market three Gilead HIV drugs in developing countries

India’s largest drugmaker Ranbaxy Laboratories (RANB: BO) says it has entered into an in-licensing agreement with US biotech firm Gilead Sciences (Nasdaq: GILD) for three new HIV/AIDS drugs which are currently in late-stage clinical development.

Ranbaxy, which is 64% owned by Japan Daiichi Sankyo, will have the rights to produce and sell generic versions of these drugs, under license, in India and other developing nations, after gaining necessary regulatory approvals. The news came swiftly after Gilead revealed yesterday that it had joined with the Medicines Patent Pool to improve access to current and investigational HIV and hepatitis B treatments in developing countries (The Pharma Letter July 12).

Under the arrangement, Ranbaxy will extend its existing relationship with Gilead for anti-retrovirals and have the rights to manufacture and market generic equivalents of new products, elvitegravir, an investigational integrase inhibitor, cobicistat, an investigational antiretroviral boosting agent and Quad, which combines four Gilead HIV medicines in a once-daily, single-tablet regimen. Ranbaxy will receive complete technology transfer of the Gilead manufacturing process and will pay a royalty on sale of finished products