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September, 2006 Pragati Maidan, New Delhi, India |
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Domestic Pharma Companies And Mncs In Tussle
Though amendments to the Patents Act, 1970 are likely to be made known only after the government tables it in the winter session of Parliament, domestic and MNC players are warring to preempt provisions that could hurt them.
The latest axe to grind is a letter to Finance Minister P Chidambaran by the Indian Pharmaceutical Alliance (IPA). In a November 24 letter, the IPA has argued against `evergreening` (evergreening is when patent owners attempt to extent the patent monopoly by seeking a new patent that updates the first one before its expiry).
Written by HF Khorakiwala, Wockhardt Chairman and IPA President, it says big pharma players misuse `evergreening` to keep modified versions of their patented drugs in the market, even after the original drug (or New Chemical Entity) goes off-patent.
IPA says, domestic industry can capture one-third of the global generics trade – or exports worth Rs 90,000 crore by 2010 – if only India`s new TRIPS – compliant Patents Act keeps `evergreening` at bay. ``We`re saying, we don`t need to introduce those drug patents in India as it could harm consumers and domestic players,`` says D.G.Shah, IPA Director-General.
But pharma MNCs have reacted angrily to IPA`s assertions. ``Yes, generics are a key strength of home-grown pharmas; but no, exports will not suffer if new forms of already patented drugs are patentable,`` is their refrain.
``Intellectual Property Rights will not have a major impact on overall revenues in India.`` Says a senior official, Corporate Affairs, Pfizer Ltd, citing an Indian Drug Manufacturers` Association report on which CMIE, FDA and BCG collaborated.
``Exports are 40 percent of India`s total pharma revenues, but generics were 90 percent of total exports in 2000-01. And 25 of India`s top 30 export destinations are WTO member countries, leaving no more than 10 percent of overall export revenues likely to be affected by product patents,`` says the report.
Three percent of India`s drug market comprises drugs under patent. So domestic growth is being driven by patented and older molecules as well as their extensions – the same growth IPA opposes in its letter.
But these voices are a common apprehension of MNCs: That a future Patents Act may not incentivise improvements on existing and known innovations. The Act should not limit patent protection solely to New Chemical Entities. India has skills and inventiveness for research that is fundamentally incremental.
Date: 18-Dec-2004
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