Both these companies are believed to be the only players in the zidovudine-based anti-HIV drugs market in the country, with Cipla being the market leader in this segment.

Cipla director Amar Lulla said that the price cut was possible due to "technical improvements" effected during the production process. Details of which could not be sought owing to the commercial sensitivity involved. Zidovir will now cost approximately Rs 15 per tablet (down from Rs 20 each) as compared with Glaxo's Retrovir price of around Rs 49 per tablet. On whether Glaxo India will consider a price cut, the British multinational's official spokesperson maintained a "no comments" stand. Analysts, however, anticipate that Glaxo India may follow suit,though it is unlikely to match Cipla's price levels essentially owing to the basic research efforts involved. The Wellcome group (now part of Glaxo Wellcome) holds the original patent for zidovudine, though this appears to be under a cloud with NIH (an institute reportedly involved in the drug's development) apparently vying for a share of the honours.

Lulla also said that as part of Cipla's social commitment, the company will ensure that drugs for cancer and AIDS are made available at almost a no-profit basis. Cipla manufactures the bulk zidovudine at its facility in Bangalore, while the formulation is done at the company's Vikhroli facility in Mumbai. However, Lulla said that the domestic pricing policy was not applicable to exports of both the bulk drug, zidovudine, or the capsule form. The company exports the drug to a host of countries and earnings on this front are estimated to be around Rs 5 crore. Zidovudine, as in the case of all anti-AIDS drugs, is not covered by the the Drugs Price ControlOrder.

Zidovudine is indicated for the treatment of HIV infection when antiretroviral therapy is warranted. The drug is also indicated for the prevention of maternal-foetal HIV transmission as part of a regimen that includes oral zidovudine beginning between 14 and 34 weeks of gestation, intravenous zidovudine during labour and the administration of zidovudine to the new-born after birth. The drug, studies indicate, reduces maternal transmission by levels as high as 51 per cent. Therapy with zidovudine has been shown to prolong survival and decrease the incidence of opportunistic infections in patient with advanced HIV disease.