China Revokes Patent On Gilead AIDS Drug Over Pricing

In the latest row between global drugmakers and governments over affordable medicines, China's State Intellectual Property Office revoked the patent on Viread, a drug sold by Gilead Sciences for treating HIV/AIDS and hepatitis B, after a challenge by Aurisco, the largest manufacturer of active pharmaceutical ingredients in the Asian country, BioWorld writes.
The rational for the move was that the Viread patent lacked novelty and was not entitled to protection, China health analyst Robert McTiernan of IHS Healthcare told the paper. And in this instance, the decision means that, unlike when a government issues a compulsory license to a specific patent challenger, the Chinese market for Viread will now be opened to numerous competitors.
"It is a fairly groundbreaking decision," McTiernan said. "The big trend is that they want pharma companies to be more flexible on pricing. They will likely be able to use this decision to negotiate lower prices on more drugs.” The maximum retail price set by the Chinese government for a 30-pack of 300-mg strength Viread was $240, which is beyond the reach of most patients in China.
The decision reflects a growing push by the Chinese government to widen access to costly medicines, especially for HIV and AIDS, while trying to maintain intellectual property protection in order to attract foreign investment, particularly from the global pharmaceutical industry. Last year, China amended its patent law so compulsory licenses could be issued to eligi...

Source: Pharmalot - August 6, 2013 Category: Pharma Commentators Authors: esilverman Source Type: blogs