JB Chemicals, Matrix Labs in licensing agreement with Gilead Sciences for HIV drug

22 September 2006

Gilead Sciences, Inc (NASDAQ:GILD) has granted non-exclusive in-licencing agreements to two Indian companies to manufacture and distribute a generic version of tenofovir disoproxil fumarate (sold by Gilead under the brand name Viread (R)). The drug is based on Gilead's proprietary technology.

The two Indian pharmaceutical comopnies are Mumbai's J B Chemicals & Pharmaceuticals Ltd and Hyderabad-based Matrix Laboratories.

Tenofovir is an anti retroviral drug, which is a well-established therapy for second-line treatment of HIV / AIDS and has recently been endorsed by WHO for first-line treatment as well. It is characterized by low incidence of resistance as compared to other first-line therapies . Currently, over 6 million Indians are estimated to be suffering from this disease.

Gilead has granted the two companies non-exclusive licensing right to manufacture and distribute generic versions of tenofovir to 95 countries including India. The Indian companies will register and distribute this drug on its own or through its partners and distributors in these countries.

In return, the two companies will pay royalty on net sales to Gilead for providing technology for the active pharmaceutical ingredient and the finished product.

JB Chemicals plans to launch a specialty division in the second quarter of FY 2007 for marketing ARV drugs in India, the current market size in India for which is estimated at around Rs100 crore.

Matrix Labs says that it will have the right to develop combination therapies using Tenofovir to enhance the effectiveness of existing therapies.