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.