Bayer V. NATCO: NATCO granted compulsory licence for Nexavar

The Controller General, P.H.Kurian issues order granting first of its kind Compulsory License in the matter of NATCO Vs. BAYERon 9^th March, 2012 for drug Nexaver (Sorafenib Tosylate) as per the section 84 of the Indian patent Act, 1970. Nexavar is the first-line treatment for liver and kidney cancer. Such landmark order is going to work as a catalyst in the chain reaction for compulsory licence in India. It will not be exaggerative to say that 9^th March should be celebrated as “Compulsory Licensing Day” in India.

Brief summary of the order:

The Compulsory License, first of its kind granted, enables NATCO 

• to sell the drug at a price not exceeding ₹ 8880 for a pack of 120 tablets (one month’s therapy) against ₹ 284,428 being the cost of  Nexavar sold by Bayer.
• The license is valid till the expiry of the patent – 2021.
• The order is subject to certain conditions such as maintaining account of sales, and
• Payment of royalty at 6% of the net sales on a quarterly basis etc.
• The order also makes it obligatory for NATCO to supply the drug free of cost to at least 600 needy and deserving patients per year. (Generousness of this order…!!!!!)

In the case of life-threatening diseases, it is the price of life saving drug which threatens the patients instead of severity of symptoms, isn’t it? This order will pave the way for patients (also generic companies) to save their life from life-threatening diseases such as cancer, AIDS etc. by enabling the availability of such drugs at affordable price.

P.S. – The image Bye-Bye depicts both the “happy departure of P.H.Kurian, Controller General” as well as “the grant of compulsory licence to NATCO & saying Bye-Bye to Bayer”.

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