ph buch 1 international seminar on evolvement of ipr and its management key ipr issues / provisions...

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1 PH Buch International Seminar on Evolvement of IPR and its Management Key IPR Issues / Provisions Affecting Business (Focus on Pharma Segment) By PADMIN BUCH B. Pharm, MBA, CMC Chief Consultant GITCO LTD, Ahmedabad February 10, 2008 Ahmedabad

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Page 1: PH Buch 1 International Seminar on Evolvement of IPR and its Management Key IPR Issues / Provisions Affecting Business (Focus on Pharma Segment) By PADMIN

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International Seminar on Evolvement of IPR and its Management

Key IPR Issues / Provisions Affecting Business(Focus on Pharma Segment)

By

PADMIN BUCHB. Pharm, MBA, CMC

Chief ConsultantGITCO LTD, Ahmedabad

February 10, 2008Ahmedabad

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GITCO PATENT ASSISTANCE CELLGITCO PATENT ASSISTANCE CELL

GITCO is a multi-disciplinary consultancy organization

Promoted by ICICI Bank, IDBI, State Govt. Corporations & Nationalized Banks

Offers Project, Management, Financial, Industrial & Technical Consultancy Services

Patent Assistance Cell is one of them

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GITCO PATENT ASSISTANCE CELLGITCO PATENT ASSISTANCE CELL

Patent AwarenessPatent CounselingPatent DraftingPatent Filing Thirty Patents filed so farInitiated by Government of

Gujarat

Patent AwarenessPatent CounselingPatent DraftingPatent Filing Thirty Patents filed so farInitiated by Government of

Gujarat

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Cash Subsidy By State GovernmentCash Subsidy By State Government

50% (Maximum Rs. 5 Lakhs) against the expenses incurred by any organization, Institute, Individual or Industrial unit for obtaining patent registration.

This assistance will be given only once per product/process per institution/individual.

A pioneering initiative

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Indian Drugs and

Pharmaceutical Industry

Quick Overview

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Indian Drugs and Pharmaceutical Indian Drugs and Pharmaceutical Industry - An OverviewIndustry - An Overview

Size of around US $ 6.5 Billion Projected CAGR @ 13.6% Exports estimated at @ 40% of turnover Formulations @ 78%; Bulk Drugs @ 22% Growth of Export : 22%, Domestic Market 8% to

10% Also Highly fragmented Industry ◄◄◄ Gujarat occupies a Prominent Position @ 42%

plus share

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INDIAN PHARMA : OVERVIEWINDIAN PHARMA : OVERVIEWStrengths:

Highly developed industry High Intellectual Capital India a huge market: 1.1 billion potential local

patients Pro-active approach by several

companies Low cost of drug development

and clinical trials Strong Bio diversity Implementation of Product

Patent act : Modified Provisions

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Patents in India: The StatusPatents in India: The Status

Two successive Governments in India have

successfully navigated the path of TRIPS

compliance

Resulted in The Patent (Amendment) Act 2005

Amendments/Provisions to sustain interests of

domestic (e.g. Pharma) industry.

Within the jurisdiction of WTO & TRIPS

Some issues not yet sorted out.

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INDIAN POSITION ON PATENT ISSUESINDIAN POSITION ON PATENT ISSUES

Sr. WTO Requirement Patent Law Status

1 Both process and product Patents must be available in all fields of Technology

The Indian Patents (Amendment) Act, 2005

Complied

2 Duration of Patent : 20 years

-do- Complied

3 No discrimination between domestic and imported products

-do- Complied

4 Micro organisms, non-biological and microbiological processes must be patented

-do- Referred to expert committee

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INDIAN POSITION ON PATENT ISSUESINDIAN POSITION ON PATENT ISSUES

Sr. WTO Requirement Patent Law Status

5 Plant varieties must be protected through either patents or sui generis system

Not protected. Some protection under Plant Varieties and Farmers Right (PPVFR) Act 2001

The plants varieties and Breeders Rights Bill at Draft stage.

6 Defination and Patentability of New Chemical Entity (NCE)

The Indian Patent (Amendment) Act. 2005

Referred to experts committee

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Protecting Interests of Domestic Pharma Protecting Interests of Domestic Pharma IndustryIndustry

Immunity for generic manufacturing

Exports of generic pharmaceutical products

Opposition to Grant of Patents Terms of Patent Compulsory Licensing

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The Patents (Amendment) Act 2005The Patents (Amendment) Act 2005& TRIPS& TRIPS

Key Provisions & Issues( More Relevant to Pharma):

Status & Implications

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Key Provisions / Issues & Key Provisions / Issues & implications : implications :

Patentability CriteriaPatentability Criteria

Only New Entity can be patented Has to be Substantially different Substituted ” New Use “ for “Mere New

Use “ thereby denying patents on the new use of known substance

Difficult to seek Patent Extension on the basis of moderate improvements

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Patentability CriteriaPatentability Criteria

Opportunity for early entry of Generics in India Market

Would benefit Generic Players Also prevent Evergreening Pressure from developed countries to at

least allow Patenting of second uses of known products

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Key Provisions, Issues & its ImpactKey Provisions, Issues & its Impact

Pre-Grant Opposition

Pre- grant opposition restored

Number of grounds restored to 11

Provisions related to the mandatory

provisions not restored.

To pay fees to access this information

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Key Provisions, Issues & its ImpactKey Provisions, Issues & its Impact

Pre-Grant Opposition

Most patent applications, especially with incremental modifications are likely to be keenly contested

Benefit to Indian Generic Manufacturers and consumers

On Flip side : delay for even genuine applications

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Key ProvisionsKey Provisions

Compulsory Licensing

Articles 27 & 31 of TRIPS lay down minimum conditions for Compulsory Licensing

Allows someone else to produce the Patented Product without consent of Patent holder

National emergencies, Urgencies, monopoly..

Essentially for Domestic Market Patent holder can continue to produce

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Compulsory LicensingCompulsory Licensing

Para 6 of Doha Declaration( 2001) and WTO

resolution of Aug 2003

Waiver of the conditions under article 31(i)

Enabled to issue CL for Exports also

For countries with no or insufficient

manufacturing capacity for pharmaceuticals

Waiver made permanent in December 2005 by

WTO

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Compulsory Licensing : ExportCompulsory Licensing : Export

License has to be awarded by that country(?)

With its low cost base and reverse

engineering skill India can export to

unregulated markets

Returns could be small Plant set up to be of international norms :

Higher Investment

Difficult for Small Units

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Key Provisions:Key Provisions:Immunity For Generic ProductionImmunity For Generic Production

Drugs being produced & marketed by

Indian Companies before 01-01-2005

Can continue to be produced

After paying reasonable royalty

Such liability would accrue prospectively

after granting Patent in India

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Patent Litigations ThreatPatent Litigations ThreatMany Small Companies not aware of IP

issues

May face Litigations in future

Patent Litigations are very costly

Essential to perform Patent Analysis/

Mapping for newer drugs

Also while acquiring a company : IPR

Valuation

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Some Other Current and Emerging Some Other Current and Emerging Issues at International LevelIssues at International Level

The need (?) for World wide Patent System

Basis for awarding Patent rights, invention/filing

Patentability of new uses for known compounds (Article 27)

National Difference in Patentability (e.g. life sciences, IT)

Language considerationHarmonization Patent Office Practices.

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In-Licensing OpportunityIn-Licensing Opportunity

Right given by Patent holderFor marketing and distribution of

Patented Drugs In return of Royalty or Profit sharing In-licensing to accelerate in next 3-4

yearsOpportunity for companies with strong

domestic presenceAlso for niche players with strength in

specific therapeutic segments

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Impact Analysis in NutshellImpact Analysis in Nutshell

Immediate Impact likely to be low/neutral

R & D Focus Consolidation to attain critical

size Exports : Regulated Markets In licensing of Patented

ProductsOutsourcing : Contract

Manufacturing and ResearchLitigations : Cost and damagesPatented Products to Increase

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Consolidation : The NeedConsolidation : The Need

Weakness: Highly Fragmented Industry

Threat : Over dominance of MNCs/Large

Companies

Opportunity : Consolidation Attain Viable size of Operations to be competitive

Capital adequacy for sustained growth

Add to shrinking Products Portfolio

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To adopt to the new Patent Regime, new business models would be in focus

a) Contract Research b) Contract Manufacturingc) Co-marketing Alliances

Herbal products ?

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India and Gujarat have the potential to emerge as the Major R&D and Contract Manufacturing Hub…...

It will surely happen

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THANK YOUTHANK YOU Padmin Buch . . .Padmin Buch . . .

GITCO LimitedGITCO LimitedGITCO HOUSEGITCO HOUSEOpp: Sardar Patel StadiumOpp: Sardar Patel StadiumNavrangpuraNavrangpuraAhmedabad-380009Ahmedabad-380009Ph. No. (079) 26565333; 26569617; 26564618Ph. No. (079) 26565333; 26569617; 26564618Fax : 079-26565279Fax : 079-26565279E-mail : [email protected] : [email protected]