Essay On Novartis India

NOVARTIS INDIA LIMITED

INTRODUCTION TO THE SECTOR & COMPANY

The health care industry and medical industry is an aggregation of sectors with in the economic system that provides goods and services to treat patients with curative and preventive care. The industry is divided into many sectors to meet the health needs of population. It consumes over 10% of GDP of most developed nations and forms an enormous part of a country’s economy, it constitutes 5.2% of India’s GDP and employs 4 million people. Also the Government plans to increase it even further nearly by 2.5% of the GDP in the 12th five year plan. The Indian health industry is expected to grow at 15% per annum to US $78.6, reaching 6.1% of GDP. The private sector plays a significant role

ISSUE WITH COMPANY

In January 2006, Novartis was denied a patent for India. The key issue was revolved around whether the Glivec is a new product under the terms of law. Novartis made an application for the patent rights and it got rejected as modified form of the drug was already in the market with 10% less cheaper cost. So Novartis filed the case in the Supreme Court challenging the rejection of the application. After 7 years of battle Novartis was again denied the patent right. Due to this the financial impact of the company was affected from the past 10