Novartis ruling should bring changes in Indian laws: USIBC

By Arun Kumar, IANS

Washington : The US-India Business Council (USIBC) has expressed the hope that the Madras High Court’s decision in the Novartis case will lead to changes in India’s laws to ensure that medical innovation is encouraged.


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USIBC’s reaction came after the Indian court Monday dismissed a controversial claim by Swiss pharmaceutical giant Novartis that it should be given the right to patent life-saving drugs and prevent their generic production in India.

“The issue here is encouraging investment in innovation to ensure access to the best treatments and cures for the people of India and the world,” said Ron Somers, president of the 250-member USIBC made up of American firms interested in growing trade ties with India.

“In other countries we have seen that inadequate protection for innovation discourages both domestic and foreign investment in innovation and access.” Somers said, noting that Glivec has been patented in 40 countries in both the developed and developing worlds.

He said 99 percent of Indian patients who need Glivec receive it free of charge through Novartis’ Glivec International Patient Assistance Programme. “That sort of innovation and access is certainly worthy of society’s encouragement and protection.”

Greg Kalbaugh, USIBC’s Director and Counsel for Intellectual Property, said, “Glivec is the only hope for many patients with Chronic Myeloid Leukemia.

India, and the world, are surely better places thanks to innovations like this.

“We view the High Court’s dismissal of Novartis’ challenge as the beginning of the debate. The issue is now before India’s policy makers, and we believe that they will do everything in their power to encourage investment in new treatments and cures while maintaining access.

“Barriers that discourage pharmaceutical innovation and impede investment ultimately limit access and are against the shared interest of delivering the most effective health care possible,” he said.

Meanwhile, AIDS Healthcare Foundation (AHF), the US’ largest and oldest such institution, applauded the Indian court’s decision as “a ruling that will protect access to affordable medicines in the developing world.”

Officials of AHF which operates free AIDS treatment clinics in India (Mysore, New Delhi and Guwahati) in collaboration with the National AIDS Control Organization)noted that Novartis’ action in first bringing the legal challenge against the government of India underscores just how out of touch the pharmaceutical industry is today with public health needs in resource-poor countries around the globe.

“Preservation of Indian patent law will go a long way in helping to ensure that access to affordable medicines in India is protected,” said Chinkholal Thangsing, Asia Pacific Bureau Chief for AHF.

“With so many people living with HIV/AIDS today, we must do everything possible to make sure that lifesaving medicines are available and affordable to those in need in India and around the world,” he said.

“The filing of this case by Novartis back in May 2006 underscores just how out of touch the entire pharmaceutical industry remains with the public health needs of the developing world,” said Timothy Boyd, Policy Research Coordinator for AIDS Healthcare Foundation.

Contrary to claims by many drug companies, increased intellectual property protections around the world have not fostered more innovation for better treatment, AHF said citing a 2006 US government report.

According to the report, “Although the pharmaceutical industry reported substantial increases in annual research and development costs, the number of new drug applications (NDAs) submitted to, and approved bythe FDA has not been commensurate with these investments.”

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