Gilead Emerging Market Agreement: Huge Win For Patients, Non-Event For Investors.
- Gilead’s licensing agreement with 7 Indian generic drug manufacturers will provide treatment to 100 million patients in 91 countries.
- The Indian drug companies will set their own price for treatment and pay a 7% royalty to Gilead, which Gilead will use for registration, safety monitoring and education.
- Gilead will realize no income from the deal – it is a humanitarian covenant with a goal of maximizing rapid access to life-saving medicine.
- Gilead would have generated very little revenue in most of these countries anyway, so the impact on investors is inconsequential.
- This deal will further solidify Sovaldi-ledipasvir as the dominant treatment worldwide for HCV.