# \[e-drug\] What future for Indias Patent Act?

**URL:** <https://talk.edrugplus.org/t/e-drug-what-future-for-india-s-patent-act/36019>\
**Category:** e-drug\
**Created:** [September 2, 2011, 5:45am UTC](https://talk.edrugplus.org/t/e-drug-what-future-for-india-s-patent-act/36019 "2011-09-02T05:45:00Z")\
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**Author:** ![Joanna\_KEENAN](https://avatars.discourse-cdn.com/v4/letter/j/96bed5/32.png) [@Joanna\_KEENAN](https://talk.edrugplus.org/u/Joanna_KEENAN)\
**Post date:** [September 2, 2011, 5:45am UTC](https://talk.edrugplus.org/t/e-drug-what-future-for-india-s-patent-act/36019/1 "2011-09-02T05:45:00Z")

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E-DRUG: What future for India's Patent Act?  
---------------------------------------

Update on Novartis vs. Union of India, Cancer Patients Aid Association &  
others in relation to the interpretation of Section 3(d) of the Indian  
Patent Act:

Swiss pharmaceutical company Novartis took the Indian government to court  
five years ago, in an effort to overturn Section 3(d) of the country's  
Patent Act that was designed to prevent the patenting of new uses and new  
forms of known medicines. Now Novartis is up to it again and is targeting  
Section 3(d) once more. The latest legal challenge in the Supreme Court  
brought by Novartis against the Indian government has the potential to  
severely affect access to affordable essential medicines for millions of  
people across the developing world.

The final arguments have started - and the next date of hearing is set for  
next week, on Tuesday 6 September 2011 - in a case that will prove  
determinant in how public health safeguards enshrined in India's Patent  
Act's Section 3(d) can continue to ensure that patents should only be  
granted on medicines that are truly new and inventive.

If Novartis succeeds in changing the interpretation of section 3(d) for the  
purpose of obtaining a patent on imatinib mesylate, India may apply the same  
standards of intellectual property protection as wealthier countries like  
the US, granting far more patents than required under international trade  
rules or envisioned by India's lawmakers. This could lead to generic  
competition on many essential drugs ending entirely and prices for these in  
both India and developing countries increasing. This would have a  
devastating impact on people the world over who rely on affordable medicines  
manufactured in India.

The Supreme Court case is the final act in a legal battle that stretches  
back over six years over India's future capacity to act as the pharmacy of  
the developing world. In 2006, the Indian patent office rejected Swiss  
pharmaceutical company Novartis's patent application for the anti-cancer  
drug imatinib mesylate - a beta crystalline salt form of imatinib. The  
application was rejected on the grounds that it lacked novelty, was obvious,  
and was un-patentable under Section 3(d) of India's Patent Act.

After Novartis mounted a legal challenge to have Section 3(d) declared  
unconstitutional, Médecins Sans Frontières (MSF) launched an international  
campaign calling on the company to DROP THE CASE, attracting close to half a  
million signatures. In 2007, the Madras High Court rejected Novartis's plea  
and in 2009 the Indian Patents Appellate Board rejected its patent  
application on imatinib mesylate once again.

But the company is not backing down. After failing to have Section 3(d)  
struck down, they are now again seeking to limits its effect. In 2009,  
Novartis filed a special leave petition in the Supreme Court against India  
in relation to the patentability criteria to be applied to imatinib  
mesylate.

It is this case that is now before the Supreme Court. Its outcome has wide  
ramifications for generic production and access to medicines across the  
developing world. MSF purchases over 80% of the medicines it uses across  
the developing world to treat HIV/AIDS from India, and international donors  
rely on affordable Indian generic medicines in similar proportions for their  
aid programmes.

But if Novartis is successful and the requirements to deserve a patent are  
lowered, many more medicines - even those that show no increased therapeutic  
efficacy will be patentable in India, and the source of affordable medicines  
will be threatened. If the substance is taken out of Section 3(d), abusive  
'evergreening'; practices - where drug companies maintain artificially high  
prices on medicines for longer by ever-extending patent protection thanks to  
minor modifications to existing drugs; will be much easier in the future.

If, by contrast, the high threshold for patentability is upheld, generic  
production will continue to drive the price of life-saving medicines down.  
Multinational pharmaceutical companies like Novartis will find it difficult  
to argue that routine improvements - such as new forms of existing medicines  
that result in improved stability, enhanced bioavailability, increased  
solubility, improved flow properties and lower hygroscopicity - meet the  
efficacy requirements of Section 3(d). In addition, the improved therapeutic  
efficacy would have to be supported with actual clinical data that  
demonstrate this effect.

What is Novartis challenging?  
Under Section 3(d) of India's Patent Act, new forms of already known  
substances cannot be patented if they fail to demonstrate the required  
degree of efficacy. The interpretation of the definition of 'efficacy' is  
therefore central to this case, and to the future of India's role as  
pharmacy of the developing world.

What does 'efficacy' mean?  
Section 3(d) requires demonstration of increased efficacy for a medicine to  
deserve a patent. In 2007 in its constitutional challenge against Section  
3(d) before the Madras High Court, Novartis also argued that increased  
bioavailability of the salt form of imatinib meant increased efficacy,  
entitling it to a patent on imatinib mesylate. But at the time, Madras High  
Court clarified efficacy to mean "therapeutic effect in healing a disease".

The Indian Patent Appellate Board (IPAB) - where appeals for unsuccessful  
patent applications are heard subsequently applied this interpretation, and  
held that the salt form of imatinib mesylate did not meet the test of  
therapeutic efficacy, and therefore confirmed the rejection of Novartis's  
patent application. Unhappy with this standard, Novartis is now before the  
Supreme Court to argue against the interpretation of efficacy by the Madras  
High Court and IPAB.

On what basis is Novartis claiming a patent on imatinib mesylate?  
Novartis is basing its claim for a patent on the salt of imatinib based on  
the fact there is a 30% increase in the bioavailability of the drug in this  
new form. But according to the Guidelines for the examination of  
pharmaceutical patents developed by the World Health Organization and ICTSD,  
the selection of a salt of the active ingredient with the purpose to improve  
bioavailability is known in pharmaceutical art. It is common knowledge in  
the pharmaceutical field that salts result in different solubility and,  
therefore, in different bioavailability.

Does India not grant patents on medicines at all?  
In 2005, India was obliged to change its patent law in order to comply with  
its obligations as member of the World Trade Organization and respect the  
TRIPS Agreement. The most significant change was the introduction of  
product patents for medicines.

This is already beginning to have a significant impact on access to  
affordable medicines, both in India and beyond, as newer medicines (invented  
after 1995) are highly likely to be product patent protected in India; and  
many such as raltegravir (HIV), peg-interferon (Hepatitis C) already are.

The production of more affordable generic versions - which has been so  
instrumental in driving down the price of older AIDS medicines by 99% in the  
past ten years - will therefore have to wait until the patents expire or a  
country issues a compulsory licence in order to overcome the patent. In the  
meantime, patients who cannot afford the high prices must simply go without.

How does Section 3(d) safeguard access to medicines?  
When framing its new patent legislation in 2005, the Indian Parliament  
sought to ensure that not only the requirement under TRIPS were met but also  
provisions to protect public health and access to medicines were ÿtaken into  
account. ÿIt therefore included explicit legal safeguards and guidance on  
how the patentability requirements should be applied.

In particular, evergreening, a well-known abuse of the patent system where  
companies seek to extend a monopoly by seeking to patent minor changes that  
do not have a therapeutic effect such as new uses, new forms and other  
routine improvements of known medicines was addressed. ÿSection 3(d) of the  
Indian Patent Act explicitly allows the broad exclusion from patentability  
of new uses and new forms of known medicines.ÿIn sum, the Indian Parliament  
by introducing Section 3(d) chose to give explicit guidance as to how to  
apply the 'inventive step' test.

Setting high standards for the various tests in the patent legislation,  
particularly the 'efficacy' test of Section 3(d) and the inventive step  
requirement, leading to fewer patents on new forms of known medicines, is  
key to safeguarding access to affordable generic medicines from India.

What is MSF's position?  
MSF supports the Cancer Patients Aid Association (CPAA) in its battle  
against Novartis. The CPAA is a party to this case and will be arguing for a  
strict interpretation of 'efficacy'; so that patents on new forms of known  
medicines - such as the one on the cancer drug imatinib mesylate - are not  
granted routinely by Indian patent offices. Given the potential huge  
ramifications on generic production and the availability of affordable  
medicines from India, MSF, along with many other treatment providers,  
patient groups and affected communities is watching carefully the outcome of  
this case.

Support the CPAA and the Lawyers Collective HIV/AIDS Unit, representing the  
CPAA in its battle to save section 3(d) and access to medicines across the  
developing world.

Joanna Keenan  
Press Officer  
Campaign for Access to Essential Medicines  
Medecins Sans Frontieres  
joanna.keenan[at]geneva.msf.org
