Big pharma gets frustrated

Controversy is heating up over healthcare costs in poor countries and the conflict between big pharma and generic local manufacturers.

In July, Novartis challenged India's unique patent laws over a cancer drug, Glivec -- and lost.  The ruling ensures that domestic generic manufacturers will be allowed to continue producing much cheaper versions of Glivec and other proprietary drugs. This may fuel an exodus of multinationals from India and allow smaller companies to scoop up the market.

Typically a patent excludes others from commercialising inventions for 20 years from its filing date, but the levels of protection vary by country and India has historically provided little or none. By 2003, nine Indian companies had obtained approval for producing generic Glivec. When Novartis asked that Exclusive Marketing Rights (EMR) be enforced, three companies were still allowed to continue. When India strengthened pharmaceutical patents in 2005, Novartis hoped to obtain protection, but in 2006 it was denied a patent on the grounds that it failed to satisfy requirements for novelty and inventiveness.   Novartis challenged the ruling but an Indian court upheld the decision. Yet in India as elsewhere, the battle is not over. Major pharmaceutical companies will step up their claims that innovation can only proceed successfully when intellectual property rights are adequately protected.