Ranbaxy enters Indian AIDS market

Published: 30-Jun-2001


The market for anti-AIDS drugs in India is to be entered by Ranbaxy Laboratories, India's largest pharmaceutical company by sales, which plans to shortly launch its brand of anti-viral drugs. The potential for AIDS drugs in the country is huge, as according to UNAIDS data, with 3.7 million HIV positive people India has the second-highest number of AIDS patients in the world.

The market for AIDS drugs is currently dominated by Cipla, the only local company to sell anti-AIDS formulations. Ranbaxy's regional director for India and the Middle East, Mr S.D. Kaul confirmed plans to launch the anti-AIDS drugs lamivudine, nevirapine, abacavir and indinavir.

Cipla is the most aggressive player in the domestic anti-AIDS drugs market, and cut prices of its brands several times since their launch, undercutting Glaxo India, whose parent firm GlaxoSmithKline holds patents for some of these drugs and been unable to match the local price cuts. Cipla for example, recently cut prices of a triple drug regimen comprising lamivudine, zidovudine and nevirapine, to Rs 6,780 (US$150)/month from Rs 11,400 (US$253) last year.

Ranbaxy is also expected to use price as the major instrument in the war for market share. The company is looking at leveraging technology to reaching consumers directly, and thus to eliminate trade margins normally factored into the price. A package of other value-added services could also be associated with Ranbaxy's brand of AIDS drugs.

Vorin Laboratories, a Hyderabad-based drugs manufacturer and a Ranbaxy subsidiary, will make the bulk drugs to be converted into finished dosage forms at Ranbaxy's manufacturing unit in Madhya Pradesh.

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