Glaxo, while declining to indicate the exact prices for Epivir, said "the company has, for over two years, been making arrangements to import requirements of Epivir for the personal use of patients, directly from Glaxo Wellcome Singapore, at a special price, which reflects a significant discount to the international price."

Retail chemists, however, say that Epivir (150 mg) commands a price of Rs 4,920 (local taxes extra) for 60 tablets, a whopping 146 per cent higher than competitor Cipla's Lamivir brand costing approximately Rs 2,000 for 60 tablets. Epivir's corresponding international price could not be ascertained.

Analysts say thatCipla's pricing strategy would "more than tilt the balance" in favour of the Indian company, though they see Epivir raking in sales in excess of Rs 50 crore in three-four years.

"We have seen American multinational Pfizer face immense pressure from Indian drug companies for hi-tech cardiovascular products like Amlogard, forcing the MNC to rework the pricing. But, given that there are just two players in this market, Glaxo will be cushioned to that extent," an analyst with a stock-broking house said.

In a faxed response to The Financial Express, Glaxo India said that after registration was granted last year, the company commenced importation of the lamivudine formulation for stock and sale during 1999.

"However, we do not offer the product through normal distribution channels because of its sensitive nature and the necessity of ensuring that it is used properly and under expert advice. It is only made available ex-depots, directly to patients, doctors and specialist clinics. Unfortunately,the smuggled product is still offered in the gey market at high prices by some chemists," it adds.

Significantly, Glaxo India's Epivir comes in an all-Hindi pack, with corresponding translations in several Indian languages. This, experts say, is an obvious attempt to curb possible suitcase exports of the Indian Epivir, though no official confirmation on the strategy could be got.

Analysts, however, add that Epivir's domestic launch, despite the absence of patent cover, is also indicative of the "faith in the Indian subsidiary". Glaxo said that local manufacture will be considered "if volumes justify the need".

On lamivudine's potential as a treatment of hepatitis B, Glaxo said that the drug had not yet been registered for the treatment of HBV. In late 1998, lamivudine was undergoing clinical trails in several countries for the treatment of the HBV infection.

However, several doctors in India, on their own, having read medical reports of its efficacy, have tried using lamuvidine in hepatitis Binfection.