Ranbaxy, Cipla among Indian cos in race for $200 mn drug deal

Leading Indian pharma companies such as Ranbaxy Laboratories, Cipla and Aurobindo Pharmaceuticals are submitting bids for the $200-million South African government tender to supply anti-HIV drugs. The contract will be to supply 10 anti-Aids drugs to the SA government and is expected to be finalised in May. It is not clear if the tender will go to a single company or will be split to more than one company. South Africa has the highest number of HIV patients in the world with as estimated 5.5 million people infected with the virus.
Ranbaxy Laboratories is expected to put the bid through its South African JV Senko Pharmaceutical which presently markets its range of ARV drugs in South Africa and other African countries. Aurobindo Pharmaceutical has the largest basket of ARV drugs and hopes to get the maximum benefit from the tender.

Indian companies are integrated drug makers and can sell drugs at a much lower cost. The quality of the drugs is high and anti-ARV drugs manufactured by Indian companies have WHO and USFDA approvals. Also, as the tender regulations will provide preference points to companies which have local manufacturing capacities, Indian companies such as Ranbaxy Laboratories, Cipla and Matrix which have tie-up with local companies there will get some benefit.