Stage set for price war in Covid drug market
Favipiravir prices to crash as pharma companies ready to launch products
The Covid-19 drug market in India is set for a pricing war, with multiple companies gearing up for launch. After Gilead Sciences’ injectable drug remdesivir, oral antiviral drug favipiravir is set to see some price erosion. Price erosion to the tune of 40 per cent is expected soon, says industry.
According to sources, companies, such as Lupin, are looking to launch favipiravir under their own brands after Glenmark launched its Fabiflu. Strides Pharma has got approval from the Drug Controller
General of India (DCGI) to conduct a bioequivalence study on favipiravir in India. Cipla and BDR Pharmaceuticals are working together to launch the drug soon.
Hyderabad-based Optimus Pharma is exporting the drug to 10 countries and is readying to manufacture for the domestic market, too. Haridwar-based Synokem Pharma is gearing up to launch this oral antiviral.
Lupin did not confirm the development. Sources say CiplaBDR’S favipiravir will be at least 30 per cent cheaper than Glenmark’s price of ~103 per tablet. Cipla did not confirm.
Most companies, however,
will go for contract manufacturing of the drug and market it under its own brand name. Glenmark is making it at Baddi and BDR will make it for Cipla.
“At least 50 brands are expected to hit the market within a month,” said an industry insider. Prashanth Reddy, director of Optimus Pharma, said its proposal was lying before the DCGI. “We have submitted all relevant data and the proposal will now be reviewed by the Subject Expert Committee. We can make 1 million tablets in one batch. Depending on demand, we can make around 10 batches in a month,” Reddy said.
This implies Optimus can potentially supply 10 million tablets to the Indian market every month. It plans to export under its own brand and forge partnerships with domestic companies for India. These companies will use their marketing muscle to sell the drug in the retail market.
Analysts peg the market size for the drug to be around ~200-300 crore, as not every patient would be prescribed a course of ~3,500 for a pack of 34 tablets (the Glenmark price).
Another industry source revealed that the pricing correction in this case is not only inevitable but also in patient interest.
“If a family of four gets the disease and is prescribed this drug, their cost would be ~14,000 only on favipiravir,” he said.
The price of the drug may come down to ~60 per tablet, felt the industry.
Remdesivir, too, has witnessed a price war with Hetero and Cipla pricing it differently.
Price erosion due to competition in India is common. After Novartis’ patent expired for antidiabetic drug vildagliptin, its price has crashed in the domestic market. The drug, priced around ~25-28 per tablet, is now made available in the market for ~5 per tablet by other brands.