Dr Reddy's to Offer Generic HIV Prevention Drug at $40 Annually by 2027
Dr Reddy's Laboratories and Hetero Labs are set to introduce generic versions of lenacapavir, a revolutionary HIV prevention drug, priced at approximately $40 per year. Distribution is scheduled to begin in 2027. The companies received royalty-free licenses from Gilead Sciences to manufacture and distribute the drug in 120 low- and lower-middle-income countries. The original drug, marketed as Yeztugo by Gilead Sciences, costs around $28,000 annually in the US. This initiative, supported by global health organizations, could potentially benefit millions in low-income countries and significantly impact global HIV prevention efforts.

*this image is generated using AI for illustrative purposes only.
Dr Reddys Laboratories (NSE: DRREDDY) has announced a groundbreaking development in the fight against HIV. The Indian pharmaceutical giant, along with Hetero Labs, is set to introduce generic versions of lenacapavir, a revolutionary HIV prevention drug, at a fraction of the original cost.
Affordable HIV Prevention
The generic versions of lenacapavir will be priced at approximately $40.00 per year, with distribution scheduled to begin in 2027. This pricing strategy aims to match the cost of oral Pre-Exposure Prophylaxis (PrEP) medications, potentially making HIV prevention more accessible to millions in low-income countries.
Comparison with Original Drug
The original drug, developed by Gilead Sciences and marketed as Yeztugo, is a twice-yearly injection that has demonstrated nearly 100% effectiveness in preventing HIV during extensive trials. However, its annual cost in the United States is around $28,000.00, making it prohibitively expensive for many patients, especially in lower-income regions.
Licensing and Support
Dr Reddy's and Hetero Labs have received royalty-free licenses from Gilead Sciences to manufacture and distribute the drug in 120 low- and lower-middle-income countries. This initiative is supported by several global health organizations:
- Unitaid
- Clinton Health Access Initiative
- Wits RHI (supporting Dr Reddy's efforts)
- Gates Foundation (working with Hetero)
Potential Impact
Experts estimate that the long-term demand for this HIV prevention drug could reach 10 million people or more. The introduction of affordable generics is crucial for expanding access to this highly effective prevention method.
Looking Ahead
The availability of these generic versions starting in 2027 could mark a significant milestone in global HIV prevention efforts. By drastically reducing the cost of a highly effective prevention method, Dr Reddy's and Hetero Labs are poised to make a substantial impact on public health in low- and lower-middle-income countries.
This development aligns with Dr Reddy's commitment to providing affordable healthcare solutions and could potentially reshape the landscape of HIV prevention in resource-limited settings.
Historical Stock Returns for Dr Reddys Laboratories
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