India's Supreme Court denies Novartis Glivec patent appeal

In a landmark decision issued on Monday (April 1) by the Indian Supreme Court has denied Swiss drug major Novartis’ (NOVN: VX) patent on the blockbuster cancer drug Glivec (imatinib mesylate). Shares in Novartis' Indian unit ended 1.8 % lower after falling as much as 6.8% after the verdict, noted a Reuters report. European markets were closed for the Easter holiday.

This provides clarification on Indian patent law and discourages innovative drug discovery essential to advancing medical science for patients, the company stated. The decision means generic drugmakers can continue to sell cheaper copies of Glivec in India, one of the fastest growing pharmaceutical markets.

Novartis has never been granted an original patent for Glivec in India. The Court denied an appeal challenging the rejection of a patent for Glivec, a life-saving medicine for certain forms of cancer, patented in nearly 40 countries including China, Russia and Taiwan. Novartis filed a Special Leave Petition with the Indian Supreme Court in 2009 challenging the denial of the Glivec beta crystal form patent on two grounds, based on Sections 3(d) and 3(b) of the Indian patent law. In addition to seeking a patent for Glivec, the company filed the case to help clarify these unique aspects of the patent law.