LexisNexis(TM) Academic - DocumentCopyright 2005 The Financial Times Limited
Financial Times (London, England)

March 23, 2005 Wednesday
London Edition 1

SECTION: ASIA-PACIFIC; Pg. 11

LENGTH: 467 words

HEADLINE: India drug patent law passes its first hurdle

BYLINE: By ANDREW JACK and JO JOHNSON

DATELINE: NEW DELHI and LONDON

BODY:


The Indian parliament yesterday approved a controversial bill that prevents domestic companies copying branded drugs after the government overcame opposition from leftwing allies by accepting amendments to curb potential abuses by multinationals.

India is required to put into effect a patent law under the country's obligations to the World Trade Organisation, but critics had claimed the original text was too tough and failed to take advantage of flexibility in the WTO system permitting governments to promote "access to medicines for all".

India, which used to champion developing country opposition to patenting regimes, has softened its stance following the emergence of a strong domestic pharmaceutical sector and the recognition that it needs to listen to the intellectual property concerns of foreign companies. Many Indian drugs companies are increasing spending on research and development and filing patent applications in the US.

The vote will come as a partial relief to multinational drug companies, which were still studying the bill yesterday. GlaxoSmithKline, which claims the largest sales of any drug company in India, warned last week that any delay or dilutions to the bill would be a step backwards for the country.

Non-governmental organisations (NGOs) argued that the country's obligations under WTO rules to grant 20-year patents on pharmaceutical products would jeopardise India's role as the largest exporter of generic drugs to developing countries, notably anti-retroviral treatments to combat HIV/ Aids. A coalition of NGOs, including Medecins sans Frontie`res, which had lobbied hard against the bill, was swift to criticise the version agreed last night.

"The worst-case scenario for people living with life-threatening diseases has been averted, but only in the short-term," the coalition said.

It warned that complex rules would trigger litigation and delays of three years before a generic drug manufacturer could even start applying to produce life-saving new treatments.

Senior representatives of the World Health Organisation and UNAIDS have been among those calling for a softening of the draft law. More than 8,900 patent applications are pending in India, including more than 7,500 from multinational groups.

Rupchand Pal, a communist leader, said the leftwing parties had decided to support the bill as the Congress-led coalition had "accepted almost all our amendments".

Among the changes tabled by Kamal Nath, India's commerce minister, were the doubling of the period for appeals against a patent to six months, tighter rules on the type of new substances eligible for protection, and measures to facilitate the export of patented drugs to less developed countries under compulsory licences.

The final version of the bill has still to be approved by India's upper house.

LOAD-DATE: March 22, 2005