The dismissal of the Novartis' patent challenge has caused tremors in the pharmaceutical industry the world over. The ruling has far reaching implications for both research-based pharma companies and the copycat generic manufacturers.

The generic drug companies like Ranbaxy, Cipla, Reddy Labs will continue to benefit from the the court’s ruling. Because it allows them to copy some latest patented drugs that fail to secure the same rights in India. This is the golden age for the generic companies in India and abroad. In fact, Novartis is the world’s second largest drug company.  

 But the issues raised in the dispute are not fully settled yet.  “We tried to resolve the issue and gain clarity on how India values and protects innovation,” says Carin Scott, the spokesperson at Novartis’ headquarters in Basel.  “Novartis is not going appeal the ruling either in the Supreme Court or at the World Trade Organization,” she told Deccan Herald, suggesting it would persist with the review of its patent application for Glivec at the newly established Intellectual Property Appellate Board (IPAB).

Denying that Novartis was trying to patent only a minor modification, Ms Scott argued that the company had secured patent for the same drug in 40 countries, including China and Thailand. The company with a staff of 3,000 employees in India has threatened to shift it R&D facilities to China where it feels confident about the level of patent protection.

Harvey Bale of international pharma lobby contended that "There is a mismatch between India’s huge innovative potential, especially in the field of pharmaceutical and biotechnology R&D, and the wording of the Indian Patent Law. It defines an innovation so narrowly as to render potentially unpatentable many breakthroughs delivering real benefits for patients.”

He claims that many multinational companies might consider opting out from the Indian market because of the fear that they would never get a patent for any advances they make for any new drug.