Bombay HC Upholds Natco's Compulsory License

Published on Sat, Jul 19,2014 | 16:08, Updated at Sat, Jul 19 at 16:08Source : Moneycontrol.com |   Watch Video :

Last week the Bombay High Court upheld the compulsory license granted to Indian pharma company Natco for the sale of a generic version of Bayer's anti-cancer drug Nexavar. Here's a look back at the first legal challenge against a compulsory license in India.

In March 2012 the Indian patent office granted Natco a compulsory license for the generic version of Bayer's anti-cancer drug Nexavar. The compulsory license allowed Natco pharma to sell a generic version of Bayer's Nexavar at Rs 8,800 per month as against Bayer's price of Rs 2,80,000 per month. The US based pharma giant Bayer challenged this compulsory license at the Intellectual Property Appellate Board. In March last year, the IPAB rejected Bayer's plea on 3 grounds.

 - One, Bayer supplied the drug to only 2% of the patient population and that the reasonable requirements of the public were not met

- Two, Bayer's pricing of the drug was excessive and did not constitute a "reasonably affordable" price.

- And three, Bayer did not sufficiently "work" the patent in India. The order interpreted 'worked in the territory of India" under Section 84 of the Patents Act to mean manufactured to a reasonable extent in India."

The Bombay High Court has agreed with the IPAB on all counts. Will Bayer, the innovator company, find better luck in the Supreme Court? CNBC-TV18's Menaka Doshi speaks to well-known patent lawyer and Senior Counsel Prathibha Singh.

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