Bayer fails in Indian Nexavar patent appeal

German pharma major Bayer (BAYN: DE) suffered a significant disappointment on Friday, when India’s Supreme Court – in a much awaited landmark ruling - rejected the company’s appeal against a Bombay High Court decision, which in July refused to revoke a  compulsory licence issued to India's Natco to sell a generic version of its blockbuster cancer drug Nexavar (sorafenib).

The Court's decision means Hyderabad-based Natco Pharma (524816: BY) can continue selling a copy of the drug, despite Bayer holding the patent. The local company's version of sorafenib costs just a fraction of the original product's price, noted the Indian Economic Times. Reportedly, Natco’s price for a month’s supply of the drug is around $173, compared with Bayer’s branded drug at $5,500.

"We are disappointed with the decision of the Supreme Court. We are analyzing the order and will determine any future course of action afterwards," commented Bayer in a statement.