Developing world supports India's compulsory licence policy

India's grant of a compulsory licence to Natco for Bayer's kidney-cancer drug Nexavar has sent shockwaves across the globe. As Bayer and the Indian government get ready to lock horns in court next week, developed and developing countries are re-assessing the balance between intellectual property and affordable healthcare, reports CNBC-TV18's Archana Shukla.

By granting a compulsory licence for Bayer's kidney caner drug, India has sent alarm bells ringing in the developed world. The US Patent and Trademark office took the matter all the way to the US Congress.

Teresa Stanek Rea, deputy director, US Patent and Trademark Office, says, "I was quite dismayed and surprised when India decided to grant a compulsory licence on grounds which were not valid. We are consistent in trying to stop those efforts and in trying to stop those compulsory licenses."

But India has found a backer in the World Health Organisation.

Nata Menabde, India representative, WHO, says, "India has taken a good political stand on compulsory licence and we respect that move. Compulsory License is a very good tool in the hands of governments and they must use it to ensure that health of the people comes before any other rights."

With over 70% of the globe trying to ensure easier access to affordable drugs, India's clarion call is being taken up by the developing world- from nations in Africa to Brazil and even China.

Albert Chen, founder, DeBund Law Offices, says, "China and India are both facing the same issues of high medicines prices. They are two fastest growing countries and people in both countries cannot afford high prices of medicines. So, with an impact from India, the lawmakers in China decided to amend the Compulsory License Act."

The BRICS nations have gone one step further and have initiated talks to use compulsory licensing provisions to source critical drugs for less developed nations from manufacturing hubs like India and China. Small wonder then, that the global pharma sector is worried.

With the global pharma sector increasingly dependent on emerging countries for growth, a power struggle is underway.

DG Shah, secretary-general, Indian Pharmaceutical Alliance, says, "Developed nations are now hardening their stance in trade talks with countries like India. They are also trying to push for treaties like Anti-Counterfeiting Trade Agreement (ACTA) and Trans-Pacific Partnership which will go beyond TRIPS."

Corporate boardrooms of innovator drug companies are also atwitter as the hunt for strategies to pre-empt conditions of compulsory licensing gathers steam.

Ranjit Shahani, president, Organisation of Pharmaceutical Producers of India, says, "It has a global impact, multi-national drug firms are assessing their stand."

Forget ripples, India's bold step to increase patient access to affordable life-saving medicines has set off a tidal wave. As developed and developing nations scramble to revisit policies, the convergence of commercial imperatives and social responsibility is set to initiate some staggering changes.