In Landmark Ruling, Indian Generics Manufacturer Obtains Compulsory License

Posted 12 March 2012 | By Alexander Gaffney, RAC 

In a landmark ruling, the Indian Patent Office (IPO) has granted generics manufacturer Natco a compulsory license to manufacture Bayer's oncology drug Nexavar, reports Pharmalot.

The 9 March ruling has the could revolutionize the pharmaceutical industry in India by potentially allowing any number of generic manufacturers to challenge patented medicines so long as they pay royalties to the original manufacturer and seek to lower the price of the drug in order to make it more affordable to Indian patients.

Bayer will be paid 6% royalties on every Nexavar product sold by Natco, though the profits from that sale will likely be drastically below its current profit margins. The drug currently retails for $5,500 per person per month, and will be sold by Natco for less than $175 per person per month.

In their ruling, the Indian Patent Office noted that the drug was hardly sold in India due to the high price of the drug, which it said factored into its decision.

Read more:

Pharmalot - Game Changer: India Issues 1st Compulsory License

IPO - Ruling

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