Natco, Hyderabad-based generic manufacture, had filed for a Compulsory License on Bayer’s Cancer Drug Nexavar in July 2011 as the reasonable requirement of public was not met, drug was not available to public at reasonably affordable prices, and that the patentee failed to work the invention within the territory of India.
Based on the aforementioned reasons, India’s first compulsory license was granted to Natco. However, Bayer, German manufacturer of Cancer drug Naxevar, was highly disappointed with the ruling and thus appealed to The Intellectual Property Appellate Board. More details about the case can be found here
image taken from here
The Intellectual Property Appellate Board rejected the German drug maker’s appeal of the 2012 ruling on this Monday. It also ruled that under the license Natco must pay 7 percent in royalties on net sales to Bayer.
What would this ruling mean?
- Price of the ant-cancer drug, Naxevar would come down remarkably. Natco’s version would cost Indian patients $175 a month, less than 1/30th as much as Bayer’s.
- Encourage more generic companies to traverse the same path, and apply for Compulsory licenses to bring down healthcare costs and provide access to affordable drugs to treat diseases such as cancer, HIV and hepatitis.
- Pharmaceutical Research and Innovation may take a step –back.
- Affect the overall International Patent System.
Bayer is disappointed with the ruling and has clearly expressed that it is not yet ready to throw in the towel. They are continuing the fight to overturn the decision in their favor by pursuing the case in Mumbai’s High Court.