News / Asia

Swiss Company Loses Drug Patent Case in India

People gather at Novartis India headquarters in Mumbai April 1, 2013.
People gather at Novartis India headquarters in Mumbai April 1, 2013.
Anjana Pasricha
In a landmark judgment, India’s Supreme Court on Monday rejected a patent for a cancer drug produced by a Swiss pharmaceutical company. The ruling is seen as a huge boost for availability of affordable drugs to treat deadly diseases, but a big blow to Western pharmaceutical companies fighting for more stringent patent protection in India, a hub for generic drugs.

The seven-year legal battle between Novartis and Indian authorities drew to a close Monday when the court said that the cancer-fighting drug Glivec did not satisfy the test of “novelty or inventiveness" required by Indian law to justify a patent.

Novartis sought a patent calling the updated version of Glivec a huge advance on the earlier drug. India, however, says Glivec is not a new drug but an amended version of a known medicine. Glivec is used to treat leukemia and is patented by many countries.   

A lawyer for the Cancer Aid Patients Association in New Delhi, Anand Grover, said India’s patent law is stricter than in many countries and only grants patents for genuine inventions.  “It does not allow new forms of known substances to be patented unless they are significantly more efficacious,” Grover stated.

The case is widely seen as a high-stakes battle between Western pharmaceutical companies that want a stricter patent regime in India and global health care activists fighting to safeguard the availability of affordable drugs produced by India’s thriving generic industry.

Health care activists are jubilant with the supreme court ruling. Doctors Without Borders says it protects public health and will ensure that millions of people across the globe are not cut off from a supply of affordable drugs used to treat deadly diseases like AIDS, tuberculosis and cancer.
“India produces 80 percent of the generic medicines that are used in lower and middle income countries," said Jennifer Kohn, medical director at Doctors Without Borders in Geneva. "In order for us to be truly to be able to access important life saving medicines to treat our patients, we need access to these lower cost generic versions.”

The price difference between generic and branded drugs is huge - a month’s dosage of branded Glivec, for example, costs about $ 2,500 compared to about $175 for generics in India.

Drug companies are discouraged by the ruling. Novartis has expressed concerns about India’s “growing non-recognition of intellectual property." Ranjit Shahani heads the India operations of the Swiss company.   

“It is not very encouraging and shows that the ecosystem to encourage innovation does not exist in India…we have seen that investments in R and D [research and development] centers since 2005, since we have had a patent law in place, all, every single one without exception has gone to China," Shahani explained. "So this gravitation of investment needs to come to India.”  

The court’s ruling is also a setback to other multinationals involved in patent disputes in India. India has not hesitated in allowing local production of expensive medicines.  Last year, it gave the go-ahead to a local manufacturer to make a generic version of a cancer drug made by Bayer, citing the need to make medicines available to people at affordable costs.

Multinational drug companies see the Indian law as a way of circumventing patent rights and argue inadequate patent protection will discourage innovators.

You May Like

800-Pound Man Determined to Slim Down

Man says he was kicked out of hospital for ordering pizza; wants to be an actor More

Australia Prepares to Resettle 12,000 Syrian Refugees

Preference will be given to refugees from persecuted minorities, and the first group is expected to arrive before late December More

S. African Miners Seek Class Action Suit Against Gold Mines

The estimated 100,000 say say they contracted the lung diseases silicosis and tuberculosis in the mines More

This forum has been closed.
Comment Sorting
by: Davis K. Thanjan from: New York
April 01, 2013 9:56 PM
The decision of the Supreme Court of India, not to allow patent for minor modifications of existing known medications, is good for the poor people who cannot afford exhorbitant price for certain medicines. Just because a few countries granted patent for a modified version of a known drug, does not mean that such patents are valid in many other countries. Every country has their own patent rules. There is need for a strict international clearing house of patents for pharmaceuticals, so that the pharmaceutical companies need not register the patents from country to country. The international patent should be valid in countries forming the international clearing house for pharmaceutical patents and acceptable to other countries. Many countries insist that the medicines should be tested in their countries, even if exhaustive research is done in other countries, adding the cost of pharmaceuticals everywhere.

The ten-fold difference in the price of patented pharmaceuticals can be reduced if the generic manufacturers or foreign patent holder can produce the drug locally in India. Yet the price difference is enormous. For example, the Vics Inhaler, manufactured by Vics (India), cost less than half a dollar in India. But the same Vics Inhaler manufactured in the US cost more than 5 dollars, about ten times difference, reflecting the very low cost of production and price countrol in India.

If the medicine is for treatment of rare diseases in few people, the cost of the pharmaceuticals will remain very high everywhere, because the pharmaceutical manufacturer has to recover the huge cost of research, development and manufacture from a few patients.

Without patent protection, no pharmaceutical company will spent millions of dollars, many times reaching billion dollar mark, in R & D to produce innovative medicine, especially for rare diseases in few patients and the cost of such medicines will remain high.

How many innovative effective medicines are discovered by India pharmaceutical compnies? India thrive on generic pharmaceuticals, but an effective innovative medicine from India is still far from the horizon.

Patent protection of pharmaceuticals is not an open voucher for the pharmaceutical manufacturers to charge exhorbitant price for medicines in any country.

by: licalgado from: Orlando, FL
April 01, 2013 12:57 PM
As it is thing, India is a free copy market.......

I think so, to pay, when the opportuny are come,... with the same medice. I bet the India complain about it.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Amnesty Accuses Saudi Coalition of ‘War Crimes’ in Yemeni
Henry Ridgwell
October 12, 2015 4:03 PM
The human rights group Amnesty International has accused the Saudi-led coalition of war crimes in airstrikes against Houthi rebels in Yemen. Henry Ridgwell reports the group says hundreds of civilians have been killed in strikes on residential areas.

Video Amnesty Accuses Saudi Coalition of ‘War Crimes’ in Yemen

The human rights group Amnesty International has accused the Saudi-led coalition of war crimes in airstrikes against Houthi rebels in Yemen. Henry Ridgwell reports the group says hundreds of civilians have been killed in strikes on residential areas.

Video No Resolution in Sight to US House Speaker Drama

Uncertainty grips the U.S. Congress, where no consensus replacement has emerged to succeed Republican House Speaker John Boehner after his surprise resignation announcement. Half of Congress is effectively leaderless weeks before America risks defaulting on its national debt and enduring another partial government shutdown.

Video New Art Exhibit Focuses on Hope

Out of struggle and despair often comes hope. That idea is behind a new art exhibit at the American Visionary Art Museum in Baltimore, Maryland. "The Big Hope Show" features 25 artists, some of whom overcame trauma and loss. VOA’s Deborah Block reports.

Video Columbus Day Still Generates Controversy as US Holiday

The second Monday of October is Columbus Day in the United States, honoring explorer Christopher Columbus and his discovery of the Americas. The achievement is a source of pride for many, but for some the holiday is marked by controversy. Adrianna Zhang has more.

Video Anger Simmers as Turks Begin to Bury Blast Victims

The Turkish army carried out new air strikes on Kurdistan Workers Party (PKK) targets on Sunday, a day after the banned group announced a unilateral cease fire. The air raids apparently are in retaliation for the Saturday bombing in Turkey's capital Ankara that killed at least 95 people and wounded more than 200 others. But as Zlatica Hoke reports, there are suspicions that Islamic State is involved.

Video Bombings a Sign of Turkey’s Deep Troubles

Turkey has begun a three-day period of mourning following Saturday’s bomb attacks in the capital, Ankara, that killed nearly 100 people. With contentious parliamentary elections three weeks away, the attacks highlight the challenges Turkey is facing as it struggles with ethnic friction, an ongoing migrant crisis, and growing tensions with Russia. VOA Europe correspondent Luis Ramirez reports.

Video Afghanistan’s Progress Aided by US Academic Center

Recent combat in Afghanistan has shifted world attention back to the central Asian nation’s continuing civil war and economic challenges. But, while there are many vexing problems facing Afghanistan’s government and people, a group of academics in Omaha, Nebraska has kept a strong faith in the nation’s future through programs to improve education. VOA’s Greg Flakus has more from Omaha, Nebraska.

Video House Republicans in Chaos as Speaker Favorite Withdraws

The Republican widely expected to become the next speaker of the House of Representatives shocked his colleagues Thursday by announcing he was withdrawing his candidacy. The decision by Majority Leader Kevin McCarthy means the race to succeed retiring Speaker John Boehner is now wide open. VOA National Correspondent Jim Malone reports.

Video German, US Officials Investigate Volkswagen

German officials have taken steps to restore some of the reputation their car industry has lost after a recent Volkswagen diesel emissions scandal. Authorities have searched Volkswagen headquarters and other locations in an effort to identify the culprits in the creation of software that helps cheat on emission tests. Meanwhile, a group of lawmakers in Washington held a hearing to get to the bottom of the cheating strategy that was first discovered in the United States. Zlatica Hoke reports.

Video Why Are Gun Laws So Hard for Congress to Tackle?

Since taking office, President Barack Obama has spoken out or issued statements about 15 mass shootings. The most recent shooting, in which 10 people were killed at a community college, sparked outrage over the nation's gun laws. But changing those laws isn't as easy as many think. VOA's Carolyn Presutti reports.

Video In 'He Named Me Malala,' Guggenheim Finds Normal in Extraordinary

Davis Guggenheim’s documentary "He Named Me Malala" offers a probing look into the life of 18-year-old Malala Yousafsai, the Pakistani teenager who, in 2012, was shot in the head by the Taliban for standing up for her right to education in her hometown in Pakistan's Swat Valley. Guggenheim shows how, since then, Malala has become a symbol not as a victim of brutal violence, but as an advocate for girls’ education throughout the world. VOA’s Penelope Poulou has more.

Video Paintable Solar Cells May Someday Replace Silicon-Based Panels

Solar panels today are still factory-manufactured, with the use of some highly toxic substances such as cadmium chloride. But a researcher at St. Mary’s College, Maryland, says we are close to being able to create solar panels by painting them on a suitable surface, using nontoxic solutions. VOA’s George Putic reports.

VOA Blogs