Gilead pushes for patent for HIV drug in India

NEW DELHI (Reuters) - Gilead Sciences Inc. will cancel its deal with Indian drug makers to produce cheaper copies of its HIV drug, Viread, if it does not get a patent from Indian authorities, a company official said on Friday.

The deal lets companies produce and distribute Viread to 95 developing countries.

The company has filed an application with the Indian Patent Office and its plea will come up for hearing on Tuesday.

Gilead's senior vice-president, Gregg Alton, said he hoped the company would obtain a patent, but added that the license agreements with Indian firms would lapse if it did not get a patent.

"The license ... would not continue because the license agreement only provides access to our asset which is our patent," Alton told Reuters.

"If we don't have a patent then there is nothing for us to enforce our partnership.

"We would not be able to work in India as a company. And we don't think that is a very good outcome," said Alton, who is in New Delhi for a hearing of the patent application.

Gilead has signed agreements with Alkem Laboratories Ltd., Aurobindo Pharma Ltd., Emcure Pharmaceuticals, FDC Ltd., Hetero Drugs, Matrix Laboratories Ltd., Medchem International, Ranbaxy Laboratories Ltd., Shasun Chemicals & Drugs Ltd and Strides Arcolab Ltd. in 2006.

HIV products contributed 68 percent to the company's first quarter revenue of $1 billion.

In April, India's health minister, Anbumani Ramadoss, said, in reference to a dispute with Novartis, that New Delhi could be forced to overrule patents and issue licenses for firms to produce vital drugs if deemed in the public interest.

Alton said Gilead's patent would not raise the prices of HIV drugs as they will encourage competition and allow it to bring prices down.