India allows generic version of Bayer drug
The headquarters of Bayer in Berlin, Germany. The Indian government authorized the generic version of a patented Bayer cancer medication on March 12, 2012, allowing for a cheaper drug.
The Indian government authorized a generic version of the patented cancer medication made by Bayer Corp., on Monday, saying that the price charged by Bayer was unaffordable in most of the country, according to The New York Times.
The more affordable generic drug made by Natco Pharma Ltd., was licensed under a law that aims at keeping drug costs more affordable, according to the Associated Press.
Bayer, which holds a patent from 2008 to 2020, markets the drug under the name Nexavar for around $5,600 a month, making it out of reach for the majority of India's population. The Natco version will be available to Indian patients at $175 a month, a price that is a 97 percent reduction on Bayer's cost.
This is the first such case of compulsory licensing since the patent laws passed in 2005, according to the AP, and Natco will pay 6 percent in royalties to Bayer. The license effectively ends Bayer's monopoly on the kidney and liver cancer treating medication.
More on GlobalPost: Leukemia drugs may stop deadly Ebola virus, US researchers say
According to The Hindu newspaper, Natco invoked the provision after Bayer declined to accept its request for a voluntary license. Under the new license, Natco will also be required to supply the drug to at least 600 needy patients free of cost, every year.
The Times of India reported that Bayer said it was "disappointed" by the news and would "evaluate options to defend intellectual property rights," in India. Compulsory licenses are legally recognized as a means of overcoming obstacles to affordable drugs, based on the World Trade Organization TRIPS Agreement, said The Times of India.
Medecins Sans Frontieres, which campaigns for affordable medication in developing countries, welcomed the move, according to Reuters. Michelle Childs, director of policy at MSF, said, "This decision serves as a warning that when drug companies are price gouging and limiting availability, there is a consequence."
More on GlobalPost: Top India CEO warns of slowdown