Indian pharma firms welcome grant of compulsory licence for Nexavar; Bayer, multinational pharma body disappointed

New Delhi, Mar 13 (PTI) India's decision to allow Natco Pharma to manufacture and sell the Bayer patented cancer drug Nexavar in the country under a compulsory licence has been welcomed by the domestic pharmaceutical firms but the multinational pharma firms forum has been disappointed with the development and Bayer is evaluating options for its next step. While the body of domestic pharma firms, Indian Drug Manufacturers Association (IDMA) said the move will benefit both patients and industry, the group for MNCs, Organisation of Pharmaceutical Producers of India (OPPI) said it would be detrimental in the long run. "We are disappointed by the decision of the Patent Controller in India to grant a compulsory licence for Nexavar. We will evaluate our options to further defend our intellectual property rights in India," a Bayer Spokesperson said. "It is beneficial for patients, industry as well as the whole country. Everyone will be benefited by this order," IDMA Secretary General Daara Patel told PTI. On Monday, the India Patents Office invoked compulsory licence for the first time in the country, paving way for the Hyderabad-based firm Natco Pharma to sell its version of Bayer's Nexavar at Rs 8,880 for a month's dose as compared to Rs 280,000 by Bayer. "OPPI is disappointed with the decision to issue a compulsory licence. We believe compulsory licences should be used only in exceptional circumstances, such as in times of a national health crisis," OPPI President Ranjit Shahani said. He further said: "If used arbitrarily, compulsory licences will serve to undermine the innovative pharmaceutical industry and will be to the long term detriment of the patient." As per WTO TRIPS agreement, a compulsory license can be invoked by a national government allowing someone else to produce a patented product or process without the consent of the patent owner. It is done for the cause of public health. As per the order of the India Patents Office, Natco will have to pay a royalty of 6 per cent of the net sales on a quarterly basis to Bayer. It will have to manufacture the drug only at its own plant since it is not allowed to outsource production. The firm is allowed to sell the drug for treatment of only kidney cancer and liver cancer in India. The order also makes it obligatory for Natco to supply the drug free of cost to at least 600 needy and deserving patients per year. PTI