In a decision that will bring cheer to cancer patients, the Intellectual Property Appellate Board has held that Natco can continue to make and sell a generic version of Bayer’s kidney cancer drug Nexavar. Only, Natco will have to pay more royalty.
By an earlier decision of the Patent Controller, the country’s first compulsory licence was issued to Natco in 2012.
However, Bayer went on appeal to the Intellectual Property Appellate Board (IPAB). In its order on Monday, the IPAB upheld the earlier decision but increased the royalty Natco would pay Bayer to 7 per cent from 6 per cent.
Bayer said it would pursue the case in the Bombay High Court. “Bayer is committed to protecting its patents for Nexavar and will rigorously continue to defend our intellectual property rights within the Indian legal system,” the company said. The IPAB order weakens the international patent system and endangers pharmaceutical research, it added.
The IPAB ruling is viewed as a big leap for public health, as it makes medicines available at a lower price, making them affordable for patients. Multinational drug-makers, however, maintain that high medicine prices are linked to costs incurred on research. Compulsory Licensing, they say, should be issued only in situations of health emergencies.
The IPAB order comes even as the Health Ministry explores Compulsory Licensing on three critical drugs, in the interest of patients.
Healthcare barriers
Bayer says the challenges in the Indian healthcare system have little or nothing to do with patents on pharmaceutical products as none of the products on India’s essential drug list is patented.
One of the main barriers in access to medicines in developing countries such as India is the lack of adequate healthcare services and infrastructure to ensure drugs effectively reach those who most need it, it said.