Transcript Slide 1

Intellectual Property Rights
and Pharmaceuticals
(Case study- Novartis’s claim in India)
Background note prepared for PHM Vic
Internet Workshop
India – Pharmaceutical Industry
• Huge drug manufacturing capacity (2nd after US
in having USFDA approved manufacturing
companies) – Prominent generic sector (Mueller,
2007)
• Production as well as export
• Generic drugs manufactured in India constitute
25% of total drug purchase of MSF and 80% of
total anti-HIV drugs used to treat 80,000 HIV
patients under MSF’s AIDS projects in more than
30 countries (MSF, 2007)
Patent Legislation, WTO and
India
1972: The Patent Act 1970 came in to force (Only
Process Patents) (CGPDT, 2007)
1994/1995: Creation of the World Trade Organization &
entry into force of the TRIPS Agreement, which obliges
developing countries to grant patents on medicines no
later than 2005. (WTO-TRIPS)
Patents (Amendments) Act, 1999 ( EMR provision)
Patents (Amendments) Act, 2002
April 2005: Amendment of India's Patents Act:
medicines can now be patented in India. However, the
law stipulates that only true medical innovations will be
protected by patents. Section 3(d) specifies that new
forms of known substances do not deserve patents.
Patents (Amendments) Rules 2005 (opposition+fees etc)
Patents (Amendments) Rules 2006 (Dates+fees etc)
(CGPDT, 2007)
Section 3 (d), Patents
(Amendments) Act 2005
" the mere discovery of a new form of a known
substance which does not result in the enhancement
of the known efficacy of that substance or the mere
discovery of any new property or new use for a known
substance or of the mere use of a known process,
machine or apparatus unless such known process
results in a new product or employs at least one new
reactant.
• Explanation.—For the purposes of this clause, salts, esters,
ethers, polymorphs, metabolites, pure form, particle size,
isomers, mixtures of isomers, complexes, combinations and
other derivatives of known substance shall be considered to
be the same substance, unless they differ significantly in
properties with regard to efficacy;". (Gazette of India, 2005)
What is the issue???
• Glivec (Gleevec in US) (Compound-imatinib mesylate)
by Novartis is patented in 35 countries & helpful in
Chronic Myeloid Leukemia
• Generic brand is already available in India at less than
one tenth (around 200 USD/Pt/Month) of the price
Novartis is selling this drug in other countries (around
2,600 USD/Pt/Month)
• July 1998- Novartis applied to get patent for Glivec in
India and was granted EMR
• January 2006- IPO rejected Novartis’s application on
the basis of its structural similarity to old compound
• May 2006- A legal petition filed in the Chennai High
Court by Novartis challenging Indian Patent Office for
denial of its patent application for Glivec as well as
challenging section 3(d) of Indian Patent Law
• September 2006- First hearing of the appeal and
challenge. No decision made. Referral to 2 judge panel.
No decisions till now. (Mueller, 2007) (MSF, 2006)
What Novartis says..
• Strong IPRs + Economic incentives = Innovation
• Gilvec International Patient Assistance Program
(GIPAP)- Free drugs to more than 17000 patients in 83
countries, 99% of Indian patients who are getting Glivec
are getting it free through Novartis’s Patient Assistance
Program
• Access to medicines clearly favors people in affluent
societies- limited access to medicines and limited
research to address disease burden in Developing world
should be priority- PPPs, Govt funded health system,
Strong IPRS+ Other economic incentives for R & D)
• 3 PPP with WHO (Leprosy, Malaria and Tuberculosis)
• ITD (Institute for Tropical Diseases) Singapore- (Dengue,
Drug resistant TB, Malaria)
(WHO, 2006)
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Major Orgs raising concern against Novartis’s claim
People’s Health Movement
Centre for Trade and Development
Medecins Sans Frontieres (MSF)
Oxfam International
Indian Cancer Patients Aid Association
INP+ (Indian Network for People with HIV/AIDS) etc.
Why?
• Access to affordable drugs
• Interpretation of TRIPS in favor of public health
Modes of opposition
• Petitions, Pre-grant oppositions, Mobilization of civil
society
Future issues…
• Judicial Interpretation of Indian Patent Act
(esp. section 3 (d))
• US influence… (MOU on Bilateral
Cooperation on IP) (Bilateral FTA)
• Priority to public health within IPRs
Framework
• Use of other public health measures
(US-India IP)