Does the Supreme Court’s dismissal of Novartis’ plea send out worrying signals that India does not protect original research and intellectual property?
Will it spurn foreign companies looking to invest in local research?
Swiss drug-maker Novartis, whose plea on its blood cancer drug Glivec was rejected today, certainly thinks so.
The ecosystem to encourage innovation does not exist, said Novartis India Chief Ranjit Shahani, interacting with the media after the judgment.
“It is a piquant situation here, where you are literally boxed in from all sides,” Shahani said, adding that there was no patent protection in the country.
Between long-drawn-out court battles, patent revocations, and issuances of licences allowing local drug-makers to manufacture patent-protected drugs, whatever route companies chose to protect their innovations, their efforts were being derailed, said Shahani..
He was referring to earlier judgments, for instance, allowing Natco to make its version of Bayer’s kidney cancer drug Nexavar, on the payment of seven per cent royalty.
While Shahani did not comment on whether Novartis would seek a review on the Glivec judgment, he said the company would introduce new products into India, but “cautiously”. But there would be no investments in research, he added.
Looking to China
In fact, he added, no foreign company will invest in local research, given the present situation. “Investment will gravitate to places that protect patents,” he said, referring to investments going to China, instead of coming to India.
“Patents provide an incentive to the pharmaceutical industry to invest in the development of new medicines to treat diseases that are currently untreatable, incurable or in the need of new treatment options,” said Tapan J. Ray, with the Organization of Pharmaceutical Producers of India, a platform largely for multinational drug companies.
“As Glivec is considered one of the most innovative drugs for the treatment of cancer across the world, OPPI members strongly feel that today’s ruling will not only dampen the environment for innovation and spirit of the research-driven companies, but will also be to the long-term detriment of the patient, hindering medical progress for diseases without effective treatment options,” he added.
Merits of Case
However, Swati Piramal of Piramal Enterprises pointed out that the Glivec judgment had to do with the merits of the case and not to do with the local patent protection system being weak. Even in the US, similar issues are being debated, she said. The reason it is getting worldwide attention is because patents are beginning to get greater strategic value in a business, as more businesses become knowledge-driven, she said. Piramal Enterprises comprises the group’s healthcare business.
jyothi.datta@thehindu.co.in