China will get cut-price supplies of GlaxoSmithKline's new HIV drug Tivicay, after an accord for a Shanghai-based - Desano Pharmaceuticals to turn into an additional manufacturer of the medicine's active ingredient.
The joint effort between Desano Pharmaceuticals and GSK's HIV unit ViiV Healthcare marks a change in the business atmosphere for the British drug-producer that was charged a record of a 3 billion Yuan (US$484 million) in September for fixing Chinese doctors.
At that moment, GSK promised to support access to its pharmaceutical locations in the country by growing local production of drugs, and adopting flexible pricing. On the other hand, a ViiV spokesperson said that the transactions with Desano originated before this commitment.
On Thursday, under the agreement declared by ViiV, Desano will manufacture the active pharmaceutical ingredient for dolutegravir, or Tivicay to add into the GSK/ViiV supply chain network for onward sale in China and other developing countries.
ViiV said that the move would permit it to offer a competitive supply of finished products, without determining the scale of price markdown. The spokesman said that the drug's price in China would be in accordance with that charged in poor countries.