Patent tussle fallout: MNCs may turn cautious on India

In the wake of Madras High Court''s decision against Novartis'' plea for a review of the Indian patent laws Multinational drug makers may hold back their product launches reports CNBC-TV18.

After a spate of anti-cancer drug launches last year, multinational drug companies may go slow in launching their products in India.

Last year, Swiss drug maker Roche launched anti-cancer drugs Mabthera and Tarceva while Merck of Germany launched Erbitux to treat colorectal cancer. These are established blockbuster brands for multinational drug makers.

But following the Madras high court''s decision dismissing Novartis'' plea for a review of certain provisions of the Indian patent law, a few companies may go slow on future launches.

Novartis for one may go slow on its overall investments in India. The company may not immediately bring into India its anti-asthma drug Xolair.

Sources also indicated that Pfizer had supported Novartis'' stand on patenting of incremental innovation and may not be keen to take up launch of patented products immediately.

Scientists feel many Indian companies like Nicholas Piramal are working on incremental innovations and the rejection of product patent to Novartis'' Glivec may jeopardise their research plans.