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India rejects Novartis challenge India rejects Novartis challenge
(about 1 hour later)
An Indian court has ruled that Swiss pharmaceutical firm Novartis cannot obtain a new patent for a modification to an existing drug. An Indian court has thrown out a challenge to the country's patent laws by Swiss pharmaceutical firm Novartis.
The firm's bid to patent a new version of anti-cancer drugs Glivec was rejected by a Chennai court because it is a new form of an existing product. The firm wanted the law changed after its bid to patent a new version of its anti-cancer drug Glivec was rejected in April this year.
Novartis said the ruling broke trade laws but that it was unlikely to appeal until the full judgement was delivered. It argued the law - which bans new patents for modifications to existing drugs - broke world trade rules.
India fears that too many patents may threaten availability of cheap drugs. But the court in Chennai ruled it had no jurisdiction over the rules set by the World Trade Organization.
The country has developed a range of generic drugs, affordable by the country's poor. Novartis, which still has an appeal pending on the Glivec ruling, said it disagreed but would probably not appeal the decision until it saw the court's full judgement.
Advocacy groups argue that if firms such as Novartis were able to patent more drugs, poorer people would not have access to such products as they would be priced out of the market. While Novartis has argued that the 2005 law threatens innovation, anti-poverty campaigners say that pharmaceutical companies can keep control of their drugs beyond the life of initial patents by patenting small modifications.
The Swiss firm said that the ruling would have long-term negative effects on research into new drugs. That, they say, means generic - and therefore cheaper - versions will take longer to get to the market.
It argues that India's patent laws, passed in 2005, were inconsistent with World Trade Organization intellectual property laws. Indian drug firms are among the world's leading manufacturers of generics, affordable by the country's poor.
"We disagree with this ruling however we likely will not appeal to the Supreme Court," said Ranjit Shahani, vice chairman and managing director of Novartis India. "We disagree with this ruling, however we likely will not appeal to the Supreme Court," said Ranjit Shahani, vice chairman and managing director of Novartis India.
"We await the full decision to better understand the court's position.""We await the full decision to better understand the court's position."