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Ranbaxy changes stand, supports IPA stand on patent's issue
Joe C Mathew, New Delhi | Monday, November 1, 2004, 08:00 Hrs  [IST]

The brave front put up by the Indian Pharmaceutical Alliance (IPA) through its letter to the Group of Minister's on Patents on October 18 by expressing their unanimity of opinion on issues related to the third amendment of the Patent Act has made IPA a laughing stock among the ministry circles. An earlier letter from Ranbaxy, the largest member company in IPA, has stated very clearly its opposition to the IPA's unified stand on patents, especially Section 3 of the Act.

While IPA is trying to project their unity through press releases quoting Ranbaxy CEO's support to IPA stand, it was Ranbaxy CEO himself who wrote to GoM stating the company's divergent stand on Patent Bill. The letter, dated September 22nd states "Ranbaxy has a difference in opinion with the IPA".

The letter brings IPA position on patents to the notice of GoM and explains "IPA proposed a change in Section 3 that defines inventions that are not patentable and has sought to list in that section the non-patentable as i) new forms of previously known substances, ii) metabolites formed in vivo, iii) changes in formularies that modify bioavailability." Ranbaxy is of the "opinion that such a stand will deny NDDS products from getting patents. While we appreciate their (IPA's) concern that trivial or frivolous patents should not be allowed, we believe that this is adequately covered by the existing Section 3 (a)," the Ranbaxy letter says.

"We are of the opinion that restricting what is patentable by enlarging the negative scope of Section 3 will ultimately restrict the IP that will be cleared by Indian scientists in terms of providing better versions of existing molecules. Obviously, unless we are assured of IP protection for these new forms, our investments in NDDS are at risk. Hence patentability of products should be decided as per existing law on the basis of a) novelty, b) inventiveness or non-obviousness and c) utility. Hence Ranbaxy stand is that Section 3 should not be modified".

Interestingly, the letter written by Ranbaxy CEO to chairman of GoM with copies to all the ministers who are members of the group is clearly against the stern stand took by IPA. With the company having given its observations well in advance, the support to IPA stand which came two weeks later is just eyewash, feel industry observers. The IPA letter to the GoM, as claimed by IPA press release, had reiterated that all its members including the country's largest pharma company Ranbaxy were unanimous in opposing patent applications meant to delay the entry of generics. "The IPA position on Patent Law, developed over a three-year period after in depth deliberations, was endorsed unanimously by all members, including Ranbaxy, at the meeting of its executive council on October 11," the letter dated October 18 said - stated IPA release.

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