Domestic firms rejoicing on Glivec verdict

Now, local firms can sell their low-priced generic version of the drug in India and export it to developing markets, where it is not patented

Domestic drug firms such as Cipla, Natco, Ranbaxy and Hetero are a happier lot following the Supreme Court verdict on Monday, dismissing Novartis AG's patent plea for anti-cancer drug imatinib mesylate or Glivec, as sold by the Swiss drug maker.

This is because the judgement allows local firms to continue selling their low-priced generic version of the drug in India as well as export it to other developing markets, where it is not patented.

"A patent on the new form would have given Novartis a 20-year monopoly on the drug," says Sarabjit Kour Nangra, vice-president (research) at Angel Broking. "As for Indian companies, it will give the freedom to launch me-too products."

According to industry estimates, the current generic market for the drug is around Rs 60 crore. This is exclusive of sales from Novartis' Glivec. According to Novartis, around 16,000 patients in India use Glivec, with a vast majority of them receiving it free of charge.

Although the impact of the SC judgment largely remains neutral on the industry because of already existing generic penetrations, experts say it is still a major development. "If the patent of the drug would have been upheld, then generic companies would have suffered a major loss," says an expert.

Going forward, multinational companies may be cautious in terms of product launches in India. However, experts say such a decision will not discourage them from launching the products given the available volumes in the country.

"When it comes to matters such as this, there are many factors that are to be considered like the patient population, therapy segment in question, and patents. But no matter how one looks at it, the most important priority at the end of the day is that the man on the street is able to have access to affordable life-saving medicines; affordability and accessibility being the main criteria," says Lupin's chief financial officer Ramesh Swaminathan.

More domestic drug makers are also expected to start manufacturing generic version of imatinib, increasing competition to bring down prices.