Natco Pharma gains on patent ruling

Reuters Market Eye - Shares in Natco Pharma Ltd surge 5.3 percent after an Indian patent appeals board upheld on Monday a decision to allow the company to sell a generic version of Bayer AG's cancer drug Nexavar.

"It would have positive earnings implication for Natco and opens up new avenues of compulsory licensing for Indian companies in order to overcome shortage of drugs or affordability," said Ranjit Kapadia, an analyst tracking the sector at Centrum Broking.

The ruling paves the way for the issue of more so-called compulsory licences as governments battle to bring down healthcare costs and provide access to affordable drugs to treat diseases such as cancer, HIV-AIDS and hepatitis.

 

(Reporting by Abhishek Vishnoi)