Novartis loses cancer drug Glivec patent case; stk dn 4%
Novartis shares continued to be under pressure after the Supreme Court earlier today rejected the Swiss drug major‘s patent plea on blockbuster cancer drug Glivec, ending a dispute that has dragged on for over six years.
April 03, 2013 / 18:33 IST
Moneycontrol Bureau
Novartis shares continued to be under pressure after the Supreme Court earlier on Monday rejected the Swiss drug major’s patent plea on blockbuster cancer drug Glivec, ending a dispute that has dragged on for over six years.The Supreme Court ruled that Glivec is not new, not innovative and failed to fulfil the section 3(d) criteria which states that inventions that are a mere "discovery" of a "new form" of a "known substance" do not result in increased efficacy of that substance and are not patentable.Novartis shares were down around 4 percent to Rs 578 after having touched Rs 558 earlier in the day.The judgement has been welcomed by many, as it prohibits global pharma firms from repeatedly claiming a patent on the same drug by making minor changes to it. That allows domestic companies to come out with cheaper generic versions, making lifesaving drugs affordable to a large section of patients in a developing country like India.Novartis' patent plea was first rejected by the Indian Patent Office, the appeal was turned down by the Madras High Court, and yet again by the Intellectual Property Appellate Board.This case has been keenly watched by global pharma giants as well as by Indian generic drug makers and aid groups. The big pharma companies see huge demand for drugs in India, given the huge population and increasing health risks. But many of these lifesaving drugs are expensive and so Indian companies making cheaper generic versions of blockbuster drugs thrive. In this case for instance, Novartis' Glivec costs around Rs 1.2 lakh for a month's dosage. In contrast, a generic version is available in India for a tenth of that.While big pharma companies have often said that allowing companies to copy their drugs could very well discourage research and development, these generic drugs are often seen as a huge helping hand for millions of poor patients. This verdict could very well set a precedent and more local firms could now jump in to manufacture generic lifesaving drugs.Last year, Hyderabad-based drug maker Natco Pharma was granted a compulsory license by a government body to manufacture and sell its generic version of German pharma giant Bayer's patent protected cancer medicine Nexavar (Sorafenib). Natco's drug is available at under Rs 10,000 for a month's treatment, while Bayer's Nexavar costs over Rs 2 lakh.Last month, India's patents appeals body dismissed Bayer's plea to stop Natco from manufacturing and selling a copy of Nexavar.While Novartis slumped, the verdict boosted several Indian pharma companies, Natco leading with gains over 4 percent. Others like Cipla, Dr Reddy's and Ranbaxy were also up around 2 percent.Also Read: Novartis Glivec verdict sparks rally in India pharma cosNachiket Kelkar
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