[Ip-health] Big Pharma hits back at Indian patent laws

[Sarah Rimmington]

http://www.business-standard.com/compindustry/storypage.php?leftnm=3Dlmnu1&=
subLeft=3D1&autono=3D294202&tab=3Dr

Big Pharma hits back at Indian patent laws
Joe C. Mathew & Pb Jayakumar / New Delhi/Mumbai August 12, 2007
Five global giants opt for China over India for R&D units
Business Standard (India)

Five multinational pharmaceutical companies have preferred China over
India for setting up research and development units due to the
inadequacies in India's patent laws. Besides Novartis, the other
companies are Roche, J&J, Glaxo and Astrazeneca,

Ranjit Shahani, managing director of the Indian arm of Swiss
multinational Novartis, said the R&D focus of all these centres, set up
during the last two years, were mostly tropical diseases, or, diseases
of the developing world. Shahani is also the president of the
Organisation of Pharmaceutical Producers of India (OPPI), which
represents multinational pharma companies.

It is, however, not clear whether the controversies surrounding the
patent law is the only reason for the companies preferring China over
India. D G Shah, secretary general of the Indian Pharmaceutical
Alliance, has in the past said that drug companies find it easier to
operate in China due to the relatively easier regulatory regime and
compliance norms.

Shahani said Novartis' Singapore facility was specifically meant to
discover medicines for diseases like tuberculosis, malaria and dengue.

"We are incurring more expenses by setting up laboratories outside India
as these diseases are specific to India and not Singapore. Whatever we
do, we will have to find patients for clinical trials and treatments in
India. It shows that even multinational companies interested in
developing drugs for countries like India are not finding the country as
a preferred destination for investment," he explained.

=93It is not about multinationals investing in the country. Unless
incremental innovations are allowed to be patented, even research-based
domestic pharmaceutical companies will not be able to survive. Almost
all the new drugs being developed by Indian companies are not original
research products but incremental innovations,=94 Shahani added.

Even as Shahani made this claim, Big Pharma has stepped up its attack on
the Indian patent system, with the Pharmaceutical Research and
Manufacturers of America (PhRMA), a group of leading global pharma and
biotech firms, joining the chorus of those concerned over India's patent
laws in the wake of the Madras High Court's recent decision to dismiss
Novartis's petition challenging Section 3 (d) of the Indian Patent Act.

The section disallows patenting of minor modifications to existing patents.

PhRMA said it was disappointed as the Indian court dismissed the
challenge to Section 3(d) of India=92s 2005 Patent Law, and was concerned
as the decision could reduce patient access to better medicines
discovered through =91incremental innovation'.

"We recognise this court case is only one milestone in India=92s long-term
development of its patent system. PhRMA encourages dialogue among all
involved groups on the path forward, and how to best support the
interests of Indian patient," said Billy Tauzin, President and CEO of PhRMA=
.


--
Sarah Rimmington
Attorney
Essential Action
Washington, DC
Office: (202) 387-8030 x34
Mobile: (202) 422-2687
Fax: (202) 234-5176
www.essentialaction.org