Bayer had moved the court in the first leg of litigation against both Natco and Alembic Pharma to bar the companies from exporting Sorafenat and Rivaroxaban.
It argued that as Natco has compulsory licence, it can sell its kidney cancer drug in India but cannot export the active pharmaceutical ingredient (API).
Bayer also sought restraining order on Alembic from exporting the drug for R&D and/or regulatory use overseas as it has patent over Rivaroxaban.
In their defence, both the companies said that they are selling the drugs for clinical trials and to ensure regulatory and US Food and Drug Administration approvals.
The court ruled that Natco and Alembic Pharma have made legitimate case thus allowing both the companies to export drugs.
Shares of Natco and Alembic Pharma rose around 2 percent on the back of this news.
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