
Kannikar Kijitwatchakul, a Thai health advocate, welcomed the ruling by India’s Supreme Court, saying it would prompt other countries around the world to improve their patent registration systems, especially for requests for extensions of patents under the “evergreen” system. This system could block competition and access to affordable treatment, she said.
She cited a study in Thailand by the Health Systems Research Institute that found that out of 2,188 requests for patent protection submitted to the Intellectual Property Department during 2000-10, only 12 were from local drug-makers. The rest were from multi-national pharmaceutical firms. US drug companies alone submitted 736 requests.
To date, 31 requests have been approved, meaning patent protection could be extended to these products for 20 years – or indefinitely.
The study revealed most requests were for extending the patent term on an existing compound of a drug or on one to which minor changes had been made. This strategy would help create monopolies in Thailand worth about Bt8.4 billion over the next 15 years, she added.
Novartis had argued that it needed a patent to protect its investment in its cancer drug Glivec, while activists said the company was trying to use a loophole to make more money out of a drug that did not have a patent.
The court decision has global significance since India’s US$26-billion generic drug industry supplies much of the cheap medicine used in the developing world.
Pratibha Singh, a lawyer for Indian generic drug manufacturer Cipla, which makes a version of Glivec for less than a 10th of the original drug’s price, said the ruling sets a precedent that will prevent international pharma firms from obtaining fresh patents in India on updated versions of existing drugs.
Novartis’ stock plunged yesterday on the Bombay Stock Exchange.