India's IPAB rejects Bayer's 'stay petition' regarding Nexavar

Over the weekend, the Intellectual Property Appellate Board (IPAB) of Chennai, India, has dismissed the plea by German pharmaceutical company Bayer (BAYN: DE), which was seeking a stay on the compulsory license issued by the Indian Patent Controller to Indian generics drugmaker Natco Pharma (524816: BY) to manufacture generic versions of the anti-cancer Nexavar (sorafenib tosylate; The Pharma Letter March 13), Bayer confirmed to TPL yesterday, but stressing that it has not rejected the company’s main appeal.

In its appeal before the IPAB, Bayer alleged that the CL decision of the Indian Patent Controller is illegal and unsustainable, and had filed for an immediate stay until the appeal could be heard. This has now been rejected by IPAB.

Compulsory licensing is a patent system under the World Trade Organization (WTO) whereby a government allows a company to manufacture a patented drug, without the consent of the innovator company. In March this year, India granted its first ever CL, by ordering Natco to sell the cancer drug at 8,800 rupees ($175) instead of $5,500 for a month's therapy, and pay 6% royalty to Bayer on the total sales.