Bayer likely to challenge patent ruling for Natco

German pharmaceutical giant Bayer AG on Tuesday said the company was mulling ways to challenge a ruling by the Patent Controller in India allowing Natco Pharma to produce and sell a cheaper version of Bayer's patented cancer drug Nexavar. HT reports.

German pharmaceutical giant Bayer AG on Tuesday said the company was mulling ways to challenge a ruling by the Patent Controller in India allowing Natco Pharma to produce and sell a cheaper version of Bayer's patented cancer drug Nexavar.

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"We are disappointed by the decision to grant a compulsory license for Nexavar," said the company in the statement. "We will evaluate our options to further defend our intellectual property rights in India."

Under the ruling, Natco will pay Bayer a 6% royalty on net sales of the drug and sell the medicine for Rs 8,800 ($175) a month.

The sum represents a 97% reduction on the Rs 280,000 price that Bayer charges in India for a monthly dose of the drug, which is used to extend the lives of patients suffering from advanced kidney and liver cancers.

The ruling is likely to promp other companies to opt for compulsory licence, analysts said.

"The approval could encourage other Indian pharma firms to go for compulsory licenses," Sapna Jhawar, pharma analyst, Sharekhan.