Patent rights, a fillip for Natco Pharma

The stock of Natco Pharma will see some buying interest after the Intellectual Property Appellate board rejected Bayer Corporation’s petition seeking a stay on the compulsory licence granted to the former. In March this year Natco Pharma got the first-ever compulsory licence to manufacture sorafenib tosylate, a generic version of Bayer’s expensive anti-cancer drug used in the treatment of liver and kidney cancer. Indian Patent Law allows grant of compulsory licence to an applicant if the patented drug is not available to the public at a reasonable price. Bayer had obtained a patent in India in 2008 for its chemotherapy drug Nexavar, which costs Rs 2.80 lakh for a pack of 120 tablets, equivalent to a month’s dosage. Natco has been asked to sell the drug at Rs 8,800 for a pack. According to the licence conditions, Natco has to pay six per cent royalty to Bayer from its net sale and manufacture. The stock on Friday closed flat at Rs 378 and its 52-week high and low are Rs 436.85 and Rs 194.95.