INDIA BUSINESS WORLD - JULY - AUGUST - 2007
The Month that was ...

HC SETS ASIDE NOVARTIS' PATENTS APPEAL

THERE is good news for cancer patients in the country. The Madras High Court has dismissed a petition filed by Swiss pharma major Novartis AG challenging the provisions of the Indian Patents Act and seeking a declaration that it is noncompliant with the Trade Related Intellectual Property Rights (TRIPS) agreement.

Novartis has filed another case, an appeal against the rejection of patent for its anti-cancer blockbuster drug Glivec, which is still pending. However, its chances look bleak what with the high court upholding the validity of Section 3(d), which says modifications of already known medicines cannot be patented unless they make the drug significantly more effective.

A division bench comprising Justice R Balasubramanian and Justice Prabha Sridevan, ruled that the Section 3(d) of the Patents Act is valid and could not be termed vague, ambitious or unconstitutional. Novartis had prayed to declare the provision as being non-compliant with TRIPS, vague, arbitrary and in violation of the Constitution.

Novartis can now challenge the order either in the Supreme Court or the dispute settlement court in Geneva. But, while disagreeing with the ruling, the company is not planning to move the apex court.

"It is a sad day for innovation," Novartis' vice-chairman and managing director Ranjit Shahani said. "Incremental innovation has value not just in improving therapeutic efficacy, but also in providing significant benefits in terms of drug delivery, patient safety and compliance."