India's worst-hit state creates stir over sourcing of COVID-19 drug

The government and private sector were urged to collaborate on its pricing.

The Indian state of Maharashtra is planning to procure Gilead Sciences’ antiviral drug remdesivir from Bangladesh-based Eskayef Pharmaceuticals, which could put pressure on local pharma companies, according to a media release from GlobalData.

Maharashtra was noted as the worst-hit state in India by the outbreak, with 97,648 confirmed cases and 3,590 deaths as of 12 June. On 6 June, the state announced its decision to import 10,000 doses of remdesivir from Dhaka-headquartered Eskayef Pharmaceuticals for $160 (INR12,000) per vial.

This decision has been met with dissonance by the Indian pharmaceutical sector, and has been put on hold as a result, as the state officials plan to wait for the Drugs Controller General of India (DCGI) approval for remdesivir by Indian or Foreign pharmaceutical companies.

Currently, four Indian companies have signed licensing agreements with Gilead, who own the patent rights for remdesivir, and are all awaiting marketing authorisation from DCGI.

“Since remdesivir is the only approved drug for COVID-19 treatment, Indian companies are vying to become the first-to-market remdesivir in the country,” Anupama Mishra, pharma analyst at GlobalData, said.

However, Bangladesh-based pharmas have taken advantage of the least developed country (LDC) status granted by the United Nations to manufacture the generic version of Gilead’s patented drug remdesivir, Mishra said. The cost of generic remdesivir is expected to be far lower than the patented product.

“Reportedly, the Central Drugs Standard Control Organization (CDSCO) has not received an application from any Bangladeshi companies for a remdesivir import license. Hence, there is a probability that Indian pharma companies can get DCGI approval before Bangladesh-based companies whenever they decide to file for remdesivir import license. However, this episode has indeed spurred remdesivir cost-related debate in India,” Mishra said.

GlobalData urged the Indian government and private sector to collaborate on the pricing of remdesivir, focussing on making the drug more affordable and accessible for patients. With this, Indian pharmas are advised to price the drug cautiously to ward off generic competition in the near future.