Patent appeals board rules against Bayer in cancer drug case

A patent appeals board dismissed on Monday Bayer AG's petition against a government decision to allow a domestic company to sell cheap copycat versions of cancer drug Nexavar, delivering a blow to global drugmakers' monopolies on high-priced medicines.

Last year, the patents office, under a mechanism called "compulsory licence", allowed Natco Pharma to sell generic Nexavar at Rs 8,800 for a month's dose -- a fraction of Bayer's price of Rs 2,80,000.

Bayer challenged this decision with the Intellectual Property Appellate Board (IPAB) in Chennai.

Although dismissing the petition, the board did order Natco Pharma to pay a royalty of 7% on sales of generic Nexavar to Bayer, an increase from the 6 percent royalty that had earlier been set.