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   TOP STORY
Thursday, October 18, 2001 


US evaluates generic cipro from India

Our Corporate Bureau

Mumbai, Oct 17: America's growing demand for ciprofloxacin — one of the antibiotics used to treat anthrax — and its inability to source the drug at the most competitive rates is threatening to bring to the fore a host of patent-related issues. The current situation, experts say, may also lend greater credence to the cries of the developing world against a “one-size-fits-all” patent system.

Doxycycline to combat anthrax
Ciprofloxacin is not the only antibiotic that can be used to treat anthrax. Doxycycline and penicillin are also said to be effective, though experts caution that these drugs may be less potent against the resistant strains.

Key players in the doxycycline market include USV, Jagson Pal, Lyka, Biochem etc, though Ranbaxy’s spokesperson said that the company can make supplies of this drug too. It is unclear how many of the smaller players have the requisite approvals for making international supplies. Alembic, Franco-Indian and Sarabhai are those with penicillin-based drugs in the market.

German giant Bayer’s US patents on ciprofloxacin expires on December 9, 2003 and except for sourcing the bulk active of the drug for R&D purposes (permissible under the Bolar provisions) US generic companies can do little but watch Bayer fill its coffers. The US can, however, opt for the compulsory licensing route and there now seems to be hope for consumers and US/Indian generic drug companies.

Senator Charles E Schumer, Democrat of New York, has now proposed that the US government buys generic versions of ciprofloxacin for its emergency stockpile, according to reports in The New York Times. Senator Schumer says that such as step would reduce dependence on a Continued on Page 3US evaluates generic cipro from India single supplier and could significantly reduce costs.

In fact, Mr Schumer is reported to have held talks with three generic manufacturers including Ranbaxy Laboratories. Ranbaxy’s official spokesperson said that the company has offered to supply 10-20 million cirpofloxacin tablets by mid-December and added that prices will certainly be “very attractive”. US sales of cipro last year were worth $1 billion and Bayer’s average wholesale price is $4.67 per 500 milligram. Corresponding generic versions in India would cost between Rs 8 and Rs 10 per tablet, analysts said. Ciprofloxacin (bulk) prices have also inched up to $30 per kg from $25 some time ago.

Another potential supplier is the Mumbai-based Cipla and joint managing director Amar Lulla said that the company can easily match Ranbaxy’s supplies. The company already has a Drug Master File (DMF) (a pre-requisite for making supplies of bulk actives internationally) for bulk ciprofloxacin and chairman and managing director Dr YK Hamied says that a US generic company has been buying the bulk from it since February 2000. The US firm has already filed an abbreviated new drug application (ANDA) and will enjoy six-months marketing exclusivity once the drug goes off patent.

Says Dr Hamied, “This is a test case and there are lessons that India must learn from this. We must not give in to Trips. Patents are national laws,” he stressed. Dr Hamied added that the US should issue compulsory licences to generic firms to tide over the crisis.

Director of the Consumer Project on Technology, James Love, has been quoted in The New York Times as saying that any employee of the US government can authorise a compulsory licence for the product without even holding a hearing, though experts say that the implications of such a move will be far-reaching. Meanwhile, Bayer plans to reopen a German facility to increase cipro output by 25 per cent and is also expanding manufacturing at its Connecticut unit to 24 hours.

 
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