Cipla-Novartis tussle set to intensify over Onbrez generic

Novartis sued Cipla over patent, in response high court told Cipla to stop selling the cheaper generic of Onbrez

The legal tussle between drug companies Cipla and Novartis over the generic substitute of the latter's respiratory medicine, Onbrez, is likely to intensify.

The high court here had told Cipla to stop selling the cheaper generic of Onbrez. According to sources, Cipla is likely to appeal to a higher Bench. It did not reply to an emailed query on this.

“This is a single-judge order and the company would file an appeal. This would go all the way to the apex court if needed,” said a lawyer close to the development, requesting anonymity.  Other lawyers and analysts tracking the case also said it was certain the domestic pharma giant would make an appeal.

The next hearing in the case before judge Manmohan Singh, who gave the latest order, is March 2.  “Traditionally, these cases have been tried at the highest courts,” said Sarabjit Kaur Nangra of Angel Broking.

The Onbrez patent runs till 2020 and Cipla in its appeal, when Novartis sued the former, had said the amount of the drug sold by Novartis in India was not adequate, given the number of people affected by respiratory disease.  Cipla has been allowed by the court to sell the existing stock of the Onbrez generic. It sells these at Rs 130 for every 10 pills; Novartis does so at Rs 677 for 10 pills.

Novartis moved the HC last month, seeking to restrain Cipla from selling the generic version.  Before that, Cipla had requested the government to revoke five patents, owned by Novartis for the drug.

Under the World Trade Organization rules, compulsory licences are recognised as a method to overcome barriers in accessing affordable medicines, where the government allows a company to manufacture a patented drug without the consent of an innovator company.

Novartis moved the HC last month, seeking to restrain Cipla from selling the generic version. Before that, Cipla had requested the government to revoke five patents, owned by Novartis for the drug. It contended Novartis has had patents on the medicine since 2008 but instead of producing it in India, had imported only a “negligible quantity”, leading to a shortage in the market.