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TWN Info Service on Intellectual Property Issues (Feb07/03)

5 February 2007


LATEST NEWS ON NOVARTIS CHALLENGE TO INDIAN PATENT LAW

Nearly a quarter of a million people from 150 countries have voiced concerns over the negative impact of a legal challenge brought by Novartis that could have on access to medicines in developing countries and have asked Novartis to drop the case. The challenge (if won by Novartis) could deal a major blow to production, domestic use and exports of generics to the world. The drug at issue here is a cancer drug (Glivec) which Novartis sells at US$2500 per patient per month while generic versions of Glivec in India only costs about US$175 per patient per month.

The hearing before the Madras High Court in Chennai on 29th January has now been adjourned until 15 February for final hearing on all issues as Novartis wanted to place on record the recently released report commissioned by the Indian Parliament and headed by R.A.Mashelkar, former head of the Council of Scientific and Industrial Research, to look into the question of patentability.

As soon as the report was released, it faced a barrage of criticisms from health activists, legal experts and academics globally, with some indicating that the Commission had sold out to corporate interests, while sidelining public health interests.

With permission, we reproduce the SUNS reports on the Novartis case, published by Third World Network. If you are interested to join the on-going petition by MSF calling on Novartis to drop the case, please go to http://www.msf.org/petition_india/international.html

In a separate but related event, the Cancer Patients Aid Association (CPAA) issued a legal notice of defamation to the CEO of Novartis with the demand that the CEO retract a statement it made and issue an unconditional apology over its company website and on Intellectual Property Watch, or pay an amount of USD 500,000 to CPAA, failing which CPAA would be forced to initiate legal proceedings. CPAA is the only patient group presently opposing the proceedings at the Madras High Court.

The legal notice (also found below) refers to “certain defamatory statements and insinuations” about CPAA published on 19 October 2006 in an article titled "Novartis Persists With Challenge to Indian Patent Law Despite Adversity", which is available on the Internet at http://ip-watch.org/weblog/wp-trackback.php?p=430. 

The article states: "Vasella said that generic companies are often behind patient groups in India, and said he would not be surprised if they gave money to the groups". This statement, the legal notice states is aimed at CPAA, and is “false and defamatory”, adding that CPAA “is known as a patients’ group that is genuinely concerned about holistic management of cancer and assisting poorer patients in procuring drugs.”

Best Wishes
Sangeeta Shashikant
Third World Network
Tel: +41 22 908 3550
Fax: +41 22 908 3551
email: ssangeeta@myjaring.net

GROUPS URGE NOVARTIS TO DROP PATENT CASE AGAINST INDIA

SUNS #6180 Wednesday 31 January 2007

Geneva, 30 Jan (Kanaga Raja) -- Nearly a quarter of a million persons from more than 150 countries have voiced concerns over the negative impact that a legal challenge brought by the multinational pharmaceutical company Novartis against India's patent law could have on access to medicines in developing countries.

The legal challenge brought by the Swiss-based Novartis against the government of India began to be heard in the Chennai High Court on Monday - despite an international petition launched by the international medical humanitarian organization Medicins Sans Frontieres (MSF) last December to put pressure on the company to drop its patent case against India.

According to MSF, nearly a quarter of a million people from 150 countries had signed its petition.

Novartis is seeking to overturn India's refusal to grant a patent on the cancer drug that the company markets as Gleevec/Glivec, and is also challenging the provision in the Indian Patents Act of 2005 which formed the basis for rejecting the Novartis patent.

On Monday, the Indian Network for People with HIV/AIDS (INP+), the People's Health Movement, the Centre for Trade and Development (Centad), and MSF, again called on Novartis to immediately cease its legal action in India.

According to the groups, many developing countries rely on affordable medicines produced in India, and such medicines constitute over half the AIDS drugs used in the developing world. India has been able to produce affordable versions of medicines patented elsewhere because until 2005, the country did not grant pharmaceutical patents.

"Novartis is trying to shut down the pharmacy of the developing world," said Dr. Unni Karunakara, Medical Director of MSF's Campaign for Access to Essential Medicines, in New Delhi.

"Indian drugs account for at least a quarter of all medicines we buy, and form the backbone of our AIDS programmes, in which 80,000 people in over 30 countries receive treatment. Over 80% of the medicines we use to treat AIDS come from India. We cannot stand by and let Novartis turn off the tap," added Dr. Karunakara.

Novartis is challenging a specific provision in India's patent law that restricts patenting of medicines to innovations only. If the provision were overturned, patents would be granted far more widely in India, heavily restricting the production of affordable medicines that has become crucial to the treatment of diseases across the developing world, the groups argued.

"Here in India, the People's Health Movement fought hard to make sure our government implemented a law that put people's health before patents and profits," said Dr. Amit Sengupta. "But now, Novartis is trying to force a change in our patent law, which could deprive people suffering from life-threatening diseases and conditions."

The World Trade Organization's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) obliged India to begin reviewing pharmaceutical patents in 2005. The TRIPS agreement, however, includes pro-public health safeguards that countries can implement, and India has included some of these in its patent law. The Doha Declaration on TRIPS and Public Health, signed by governments in 2001, reinforced the right of countries to use these safeguards.

"The TRIPS Agreement already makes it difficult for India to produce the affordable drugs that people need," said Gopakumar of Centad. "By challenging the pro-public health safeguards in the Indian law, Novartis is going even further and is trying to undo the Doha Declaration, restricting access to medicines."

According to the groups, one provision of the Indian law states that any interested party can oppose a patent before it is granted in a "pre-grant opposition" process. Such oppositions have been filed against numerous patent applications on essential medicines that do not warrant patents under Indian law.

"We have opposed patent applications for crucial AIDS drugs that we need to be able to access at affordable prices," said Elango Ramchandar, President of INP+. "Our survival depends greatly on winning these patent oppositions. We need everyone, everywhere to join us in our effort to get Novartis to back off here in India."

A joint NGO statement on Novartis' challenge to the Indian Patents Act said that the stakes of the case reach far beyond India, and are global. Today, Indian generic manufacturers supply over 50% of all antiretroviral drugs given to patients in the developing world. But if Novartis wins and succeeds in getting the provision of the Indian law changed to resemble patent laws in wealthy countries, patents may be granted in India far more broadly.

Over 6,000 drug patents including for AIDS drugs are awaiting examination by the Indian patent offices. Whether patents on these medicines are granted may depend on the outcome of this case. If Novartis prevails, India will cease to be the pharmacy of the developing world, and access to medicines will be further threatened, the NGOs warned.

The statement, released on Monday, urged Novartis to immediately cease its legal action in India.

The NGOs that signed the statement included MSF, Oxfam, Knowledge Ecology International, Health Action International, Third World Network, Delhi Network of Positive People, India, Centre for Trade and Development, India, Instituto Brasileiro de Defesa do Consumidor, Brazil, Associacao Brasileira Interdisciplinar de Aids, Brazil, Grupo de Trabalho da REPRIB sobre Propriedade Intelectual (GTPI), Brazil, and Berne Declaration, Switzerland.

IPS adds from Brooklin, Canada: India did not allow the patenting of pharmaceuticals until 2005, when it was forced to as a condition of its entry into the World Trade Organisation (WTO), said Ellen't Hoen, director of policy advocacy for MSF.

However, the WTO's 2001 Doha Declaration allows developing countries to manufacture generic drugs and override patents in times of public health crises and to export these to others that don't have the ability to make them.

"Big phamaceutical corporations have been pushing to ignore Doha and obtain higher levels of IP (intellectual property) protection through free trade agreements and lawsuits," Hoen said in an interview.

India's 2005 patent law only allows drug patents on completely new compounds invented after 1995. When Novartis filed for a patent on its leukaemia drug Glivec (Gleevec in some countries), the Indian patent office ruled that the drug was simply a new form of an existing treatment that was developed before 1995. This was India's first-ever drug patent rejection.

Novartis acknowledges that Glivec is an improved version of an older drug. And despite the fact that the company gives the drug away free to anyone in India who can't afford to buy it, it wants the courts to overturn the patent decision and is challenging Section 3d of the Indian Patent Act of 2005.

"The Indian Patent office is creating hurdles to pharmaceutical innovation," says Brandi Robinson, a Novartis spokesperson in New York.

Since the company gives away the drug to "99% of the people who need it", the court case is about patent rights and not access to life-saving drugs, Robinson said in an interview.

Hundreds of thousands of AIDS patients are living today because of India's generic drugs, said Loon Gangte of the Delhi Network of Positive People, an AIDS activist organisation. "If Novartis wins, it will affect the lives of AIDS patients," Gangte told IPS.

Leading medical journals such as The Lancet, global health organisations and officials in many countries have all asked Novartis to drop the case. MSF launched a petition that now has nearly a quarter of a million people from over 150 countries who expressed their concern about the impact of the Novartis case on access to medicines in developing countries.

"It feels like we're back in South Africa in 2001," said von Schoen-Angerer.

Novartis was one of the 39 companies that took the South African government to court five years ago in an effort to overturn the country's medicines act that was designed to bring drug prices down.

"The current economic model of drug R&D doesn't work for the developing world," said Hoen.

Under this model, high levels of patent protection for at least 20 years and often longer means that companies with proprietary products have monopolies and can charge whatever price they want, guaranteeing money for research and plenty of profits.

"In some cases, this works, boosting R&D investment but in many cases, the money doesn't go into research," Hoen noted.

Pharmaceuticals are a $600 billion a year industry and there are "lots of opportunities to make money", she said.

Free handouts from drug companies aren't the answer either. These benefit a few thousand people, but by no means do all drug companies have such donation programmes and they are often short term or one time only offers, said Hoen.

"We need a new and affordable system for drug research and manufacturing," she concluded.

ANGER GROWS AT NOVARTIS' BID TO HOG CANCER DRUG

SUNS #6181 Thursday 1 February 2007

Bangalore, 30 Jan (IPS/Keya Acharya) -- A public outcry has followed the challenge offered by Novartis AG in the Madras High Court to the Indian Patents Act as violating international trade laws and restricting the Swiss pharmaceutical giant's trade.

In April 2005, the Indian government as a member of the World Trade Organisation (WTO) and signatory to its trade-related intellectual property (TRIPS) provisions, amended domestic law to recognize 20-year patents on products, annulling the country's 7-year patents on processes.

A slew of important generic drugs or those being produced after patent expiry have since been forced off the market, unless, as per clauses in the amended Indian Patents Act, the patent applications can be proved to be not 'new' or involving innovative molecular research.

In the first test of the amended Indian law, Novartis applied for a patent on its leukaemia-treatment drug 'Gleevec', but was rejected by the Patents Office in southern Chennai city as not being innovative enough. The company thereafter filed a writ in the Madras High Court, located in Chennai, challenging the rejection.

The court hearing was adjourned to February 15 due to Novartis wishing to include a recent report commissioned by the Indian Parliament and headed by R.A. Mashelkar, former head of the Council of Scientific and Industrial Research, to look into the question of patentability.

The Mashelkar report asks for inclusion of patents on medical entities with 'one or more' inventive steps, in the 'national interest', thereby allowing patents on products that do not involve new molecules.

Several legal and civic groups are outraged at the report as having 'sold out' to corporate interests, and have been slamming Novartis ever since it exerted exclusive marketing rights in 2004 for Gleevec, pushing prices up from $175 to $2,000 per month of treatment, affecting immediately India's 25 million leukaemia patients.

"I think what happened in court yesterday (Monday) is an example of 'double-speak' in India," says Dr. Thelma Narayan, joint convenor of 'Jan Swasthya Abhiyan', the national face of the global People's Health Movement (PHF).

"Novartis was recently given a global award with United Nations recognition for 'corporate social responsibility', yet millions in India and poor countries are either dying or not being able to afford treatment due to the company's bid at market monopoly of a generic drug. I think such giant MNCs need to be exposed,"

Bangalore-based Narayan told IPS.

"If the Mashelkar report had defined inventions properly, we could have saved the situation," B.K Keyala, a former patent commissioner of India and part of the 'People's Commission' headed by former prime minister Inder Kumar Gujral, told IPS. Keyala says that he has organised four commissions on patents awareness with influential individuals participating but, ''no one has cared enough.''

At least seven civic, legal and health groups together with the PHF and Medicins Sans Frontieres (MSF) have been campaigning actively in the last year against Novartis filing for patent claim on Gleevec.

Lawyers' Collective, the legal advisers to the Cancer Patients Aid Association opposing Novartis in court, have broadened the issue in public to include essential drugs, since the Novartis judgement will indirectly impact the manufacture and affordability of generic drugs for not only leukaemia but also for treatment of other significant cancers, HIV/AIDS and several other diseases in developing countries.

Anand Grover of the Lawyers' Collective blames the Indian government's seemingly pro-corporate stance and says it is being influenced by western trade agendas, especially that of the United States. "Government policies are only thinking about the hype of India being poised as an economic powerhouse, without addressing the needs of its poor."

Keyala too agrees that corporate agendas, especially of multinational drug giants, have influenced government, but believes that civic groups could have strategised differently for better effect. "They need to campaign for including HIV as a national emergency and then get generic drugs out of the patents' circle," Keyala said.

Under Indian law, and allowed by WTO under the Doha Declaration, generic drugs used for public health emergencies can be manufactured under licence.  "Winning from the patent office itself, due to our pre-grant opposition, was a big thing," says Naveen Thomas of the All India Drug Action Network, based in Bangalore.

"We can still fight with 'them', everything is not lost," said Dr. Prakash Rao of the state-level Drug Action Forum in Bangalore.

Yet the Indian medical fraternity has been visibly silent in this civic discontent against what Novartis' patent claim stands for. Dr. Ananth Phadke of the Centre for Enquiry into Health and Allied Themes at Pune in south-western India, feels that Indian doctors are not sensitised enough to drug histories and patents in their medical curricula, besides being 'wooed' by drug manufacturers.

But Dr. Ajay Kumar, president of the Indian Medical Association (IMA) with over 178,000 doctor-members countrywide, says that he feels 'very strongly' about the whole issue of generic drugs and price rise through patenting.

"Corporatisation of medicine serves only one percent of India's population. I will be taking up the issue of pricing and allowing Indian pharmaceuticals to manufacture generics with the government,'' Kumar told IPS, over telephone from the eastern Indian city of Patna.

The next legal challenge taking shape in India is the multinational drug lobbies' pressure on the government to insert 'data exclusivity' or the prevention of use of data from clinical trials by the Drug Controller's Office, through amendments in the Drugs and Cosmetics Act that controls drug marketing.

"By implication, as long as the exclusivity lasts, generic producers would have to submit their own data to prove safety and efficacy, which would oblige them to repeat the clinical trials. This is something that would cause significant delay that many generic manufacturers cannot afford,'' says a WHO bulletin released in March 2006.

The Affordable Medicines and Treatment Campaign, spearheaded by the Delhi-based Lawyers' Collective, has conveyed its concern to Indian Prime Minister Manmohan Singh, highlighting how data exclusivity impedes the use of compulsory licences in public health emergencies and prevents drug regulatory authorities themselves from relying on test data already in their possession for subsequent approval of generic versions of the medicine.

22 January 2007

Dr. Daniel Vasella  Chairman and Chief Executive Officer
Novartis AG
Schwarzwaldallee 215
4058 Basel
Switzerland.

Dr. Daniel Vasella
Chairman and Chief Executive Officer
Novartis AG
Lichstrasse 35
4002 Basel
Switzerland.

Sub: Defamatory statements made by you

Dear Dr. Vasella,

Under instructions from my client, Cancer Patients Aid Association, through its founder-Chairman, Mr. Y. K. Sapru, I have to state as under:

My client, Cancer Patients Aid Association, is a charitable organisation and was registered in India under the Societies Registration Act, 1860 in January 1970 and under the Bombay Public Trusts Act, 1940 in February 1970. My client has its registered office at 5, Malhotra House, opposite G.P.O., Mumbai – 400 001. My client has its head office in Mumbai and branch offices in Delhi, Bangalore and Pune. It also has a worldwide reputation for its integrity, hard work and dedication.

My client states that it was founded with the objective of providing holistic and total management of cancer patients, including awareness, prevention, treatment and rehabilitation of cancer patients. Over the past three decades, through sheer dint of hard work, my client has built up tremendous goodwill for itself as an organisation that offers help for the holistic and total management of cancer.

My client states that on 10 November 2003, Novartis AG was granted exclusive marketing rights for Gleevec by the Patent Controller of India. Subsequently, Novartis AG instituted infringement actions against Indian companies, who were manufacturing and selling Gleevec at Rs. 8,000-12,000 per month in India. Novartis AG was successful in obtaining injunctions restraining most Indian companies referred to above from selling Gleevec. As a result of this, those who wanted to purchase Gleevec had to pay Rs. 120,000/- per month.

My client states that therefore on 22 July 2004, it filed a petition against Novartis AG, the company of which you are the Chairman and Chief Executive Officer, before the Hon’ble Supreme Court of India challenging the Exclusive Marketing Rights that was granted to Novartis AG by the Patent Controller of India.

My client states that after the amendment to the Indian Patents Act in 2005, it filed a pre-grant opposition to the grant of a patent to the application filed by Novartis AG for the drug Gleevec. On 25 January 2006, the Patent Controller rejected Novartis AG’s application.

My client states that pursuant to the order of the Patent Controller, Novartis AG has challenged the decision of the Patent Controller and also Section 3(d) of the Indian Patents Act, 1970 before the Hon’ble Madras High Court at Chennai.

My client states that it has recently come to its notice that you have made certain defamatory statements and insinuations about my client, which were published on 19 October 2006 in an article titled "Novartis Persists With Challenge to Indian Patent Law Despite Adversity", which is available on the Internet at http://ip-watch.org/weblog/wp-trackback.php?p=430. It is indisputable that this article is with reference to the aforementioned cases before the Hon’ble Madras High Court. It is also well-known that my client is the only patient group that is presently a party opposing you in the proceedings before the Hon’ble Madras High Court. The article states: "Vasella said that generic companies are often behind patient groups in India, and said he would not be surprised if they gave money to the groups". Therefore, it is clear that your comments are aimed at my client and you have alleged that my client is backed by generic companies and further that it accepts money  from generic companies. This is false and per se defamatory.

My client has, through sheer dint of hard work, obtained for itself a lot of credibility and goodwill in society. As stated above, my client has a reputation in India and worldwide for its integrity, hard work and dedication. It is known as a patients’ group that is genuinely concerned about holistic management of cancer and assisting poorer patients in procuring drugs. It is due to my client’s concern for access to medicines for poorer patients that it has been involved in the aforementioned proceedings against you. However, your comments insinuate that my client is an organisation that is backed by and being paid money by generic companies to oppose multinational pharmaceutical companies. My client states that this is false and per se defamatory of my client and its work for cancer patients.

My client wishes to state that it has not accepted any money from generic companies for the case relating to Gleevec at any time whatsoever. Moreover, the lawyers acting for my client in the Gleevec case have acted and agreed to act for my client pro bono.

My client states that due to the statement made by you, my client has been portrayed as a sham patient group. This article is accessible over the Internet and can be accessed by thousands interested in the issue of access to medicines. My client has received telephone calls from journalists from India and abroad, oncologists and several close friends and relatives inquiring whether the statement made by you imputing that my client has received money from generic companies for the Gleevec case. This has put my client in an extremely embarrassing position and my client is constrained to justify the proceedings it has undertaken.

You are hereby called upon to forthwith retract your statement and issue an unconditional apology over your company website and on Intellectual Property Watch, and pay an amount of USD 500,000 to my client as damages, failing which my client will be forced to initiate legal proceedings, civil or criminal, against you, entirely at your risk as to the costs and consequences, which please note.

 


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