In the wake of the Madras High Court judgement, the pharma industry is heaving a sigh of relief with insiders feeling that the Swiss multinational has not only committed a “strategic mistake” but went a little too far with it.

The majority feel that the judgement will not impact genuine “incremental innovations” vital for having new medicines on the shelf. On the contrary, it will block only “frivolous patent” claims, saving millions of patients not only in India but also in other parts of the world.

“For the poor and for the public health programmes, India will continue to be a "pharmacy to the world,” said D G Shah, the general secretary of Indian Pharmaceutical Alliance – an industry association. The IPA member companies account for about 30 per cent of the domestic market and contribute one-third of total pharma export.
The industry heaved a collective sigh of relief as the judgement allows them to continue to market not only imatinib mesylate (Gleevec) but also other similar molecules for which patents are claimed in India for trivial changes. “For the policy makers it will encourage use of TRIPS flexibilities for the public health,” he said.

“This is a welcoming move for scores of Indian patients. Otherwise they would have been in a complete mess.

The judgement is in compliance with TRIPS. There is nothing wrong with 3(d) as European law has the same provision,” says Cipla managing director Amar Lulla. Industry sources say the other big pharma companies are not supporting Novartis as they feel it had committed a “strategic mistake”.

The company is not getting support from within the European Union either, said a source, adding that had the ruling had gone in favour of Novartis, it would have lead to hundreds of patent claims with “marginal improvements” thereby depriving the poor patients from having inexpensive medicine.

The act does not stop “any incremental innovation that has significant therapeutic advancement”. But this particular claim by Novartis claim was frivolous, said Girjanand Wakankar, executive director of Indian Drug Manufacturers Association, another leading pharma industry association. Novartis, for obvious reason, is putting up a brave face.

"We disagree with this ruling but we will not appeal to the Supreme Court," said Ranjit Shahani, vice-chairman and managing director, Novartis India.

“Medical progress occurs through incremental innovation. If Indian patent law does not recognise these important advances, patients will be denied new and better medicines,” said Paul Herrling, head of corporate research in Novartis.