Pharmac, a New Zealand Government drug funder, will fully fund a brand of Quetiapine drug made by Indian company Dr Reddy's Laboratories.
According to Pharmac, from October 1, the subsidy for Seroquel, a brand of the antipsychotic drug Quetiapine, made by AstraZeneca will be reduced. Instead, the new brand of Quetiapine made by the Indian pharma giant Dr Reddy's Laboratories would be introduced.
Pharmac medical director Peter Moodie said the new drug would be fully funded, alongside existing drug Quetapel.
They won the contract in the tendering process and the New Zealand Government's decision is likely to boost the revenues from that country, Dr Reddy's CFO Umang Vohra said.
"The New Zealand market for Quetiapine is small compared to USA. However, the Government funding will help increase revenues," Vohra told PTI.
He said the current revenues form New Zealand stands at $10 million. About 34,000 New Zealanders take Quetiapine every year, with Seroquel the most commonly used. Quetiapine drug is used for treating both manic and depressive dimensions of bipolar disorder.
According to AstraZeneca annual report, the annual sales of drug is approximately $3.01 billion in the USA.
Dr Reddy's has received tentative approval for the Company's Abbreviated New Drug Application for Quetiapine Fumarate 25mg tablets from US Food and Drug Administration (FDA) last year. Dr Reddy's is the only domestic player to have received the approval.