Indian patent appeal board upholds compulsory license on Bayer's Nexavar

After much delay, the verdict into German pharmaceutical major Bayer’s (BAYN: DE) appeal against the grant of a compulsory licence has now been issued by India’s Intellectual Property Appellate Board (IPAB) in Chennai, upholding the March 2012 granting of the first compulsory license for the firm’s kidney and liver cancer drug Nexavar (sorafenib tosylate).

Last year, the Indian patents office allowed Indian generic drugmaker Natco Pharma (524816: BY) to sell generic Nexavar at 8,800 rupees ($160) for a month's treatment -- a fraction of Bayer's price of 280,000 rupees (The Pharma Letter March 13, 2012). On May 4, 2012, Bayer challenged the ruling, hearings on which by the IPAB have seen a number of delays (TPL August 22, 2012).

However, as part of Monday’s dismissal of the petition, the IPAB ordered Natco Pharma to pay a royalty of 7% on sales of generic Nexavar to Bayer, an increase from the 6% royalty that had earlier been set by India’s Controller of Patents.