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Anthrax drug: Indian cos face patent hurdle

P.T. Jyothi Datta

NEW DELHI, Oct. 21

EVEN as Bayer AG is set to take up with the Canadian Government the latter's decision to augment stockpiles of ciprofloxacin through supplies from a generic company, Indian pharma companies, gripped by a ``me-too'' syndrome, may not be able to rejoice, at least not just yet.

Despite ciprofloxacin notching up domestic sales of Rs 350 crore annually, Indian companies are unlikely to gain entry into markets such as the US and Canada, still under the grip of Bayer's patent till 2003, top industry officials told Business Line.

It is the scare, rather than anthrax per se that is fuelling the perception of an emergency and a subsequent opportunity for generic companies, they observed.

The issue, however, throws up its own lessons, according to Dr Yusuf Hamied, Chairman and Managing Director, Cipla.

Speaking to Business Line, he said: ``The lesson for the Indian Government, which is yet to put its patent policy in place, is that it should not allow exclusive and monopolistic practices in health and food issues. But for the Indian pharma industry, it is unlikely to have an impact just yet.''

However, he added, that sale of ciprofloxacin in the country had risen in the last few days as consumers were buying the drug and despatching it abroad to family members through courier. Priced at Rs 8.50 for a tablet in India, Ciprofloxacin sells at abo ut $7 in the US.

Only three companies -- Ranbaxy, Cipla and Dr Reddy's -- of the 78-odd companies that make the bulk ingredient for ciprofloxacin, are equipped to sell in the post-patent period, industry representatives pointed out.

``There is this `me-too' syndrome that has gripped domestic companies, forcing them to explore an opportunity in markets that are out of bounds. Even if the scare spreads to countries such as Kenya, these are small markets,'' they observed.

Bayer is reported to have said that Canada's decision to commission Apotex Inc to make one million tablets of ciprofloxacin for stockpiling sets a ``dangerous precedent''.

But representatives of major pharma companies insist that the likelihood of over-riding the patent regime, if at all, is only if an epidemic breaks out. ``An opportunity may arise for some major pharma companies if doxycycline or amoxyciline are allowed. But going by the fear-psychosis as against actual occurrences, domestic pharma companies appear to be going overboard about nothing,'' the representative said.

An offer gift-wrapped in controversy?

As if the excitement in the pharma industry around ciprofloxacin were not enough, the Indian Government walked the extra mile by giving the US ``a gift of $1 million worth of ciprofloxacin''. However, none of the companies approved to sell in the post-pa tent period has been contacted as yet.

``Whether the US Government would accept the gift of ciprofloxacin is doubtful, for there is always the issue of Bayer's patent. Besides, the Government would have to source the drug only from approved sources and the approved companies have not yet been contacted by the Government,'' representatives of top pharma companies told Business Line.