Generic Drug Case Study Solution

The generic drug:

1) Sorafenib was available from Cipla for Rs 27,960

2) Natco is providing the same at Rs 8,880/-. After the judgment for grant of compulsory license Cipla has slashed its price further and now it is available for Rs 6,600/- per patient per month.

Per Capita Income of India (PCY) in 2011 - $1575/- and cost of Bayer’s Nexavar PP/Year in 2011 - $69,000/- and cost of Natco’s Sorafenib PP/Year in 2011 - $2,120/-. Hence, Bayer was charging almost 45 times the Per Capita Income of India of India.

Hence to overcome this situation, the following happened:

Natco, a generic drug manufacturing company requested Bayer for giving it a voluntary license. The request was denied and so Natco filed an application in the Controller of Patents Court for grant of a compulsory license. In accordance with the provision of Indian Law’s

Perspective of Developing Countries

Developing Countries use compulsory licensing to provide their citizens greater access to essential pharmaceutical products which is the essential duty of every nation. Citizens of developing countries lack access to critical life saving life enhancing drugs because in developing countries it is difficult for them to afford expensive brand name pharmaceuticals.

Governments of developing countries claim that the pharmaceutical industry exploits their impoverished citizens, who are dependent on foreign pharmaceutical companies to provide essential medicines.

These governments recognize the need to invoke national policies that would alleviate the present human suffering in their countries. Developing countries also justify the use of compulsory licenses as a legitimate means of developing and fostering a local generic industry. Among the benefits that may arise from a domestic industry is domestic economic growth, which in turn would strengthen the global economy.

THE TRIPS