Natco Pharma Ltd has received a compulsory licence from the Indian patents office to manufacture and sell a generic version of Bayer's cancer treatment drug Nexavar, its chief financial officer said on Monday.
The Indian Patents Act has a provision to issue compulsory licence to drugmakers after three years of the grant of patent on particular products which are not available at affordable prices.
The licence winner then makes and sells low-cost drug in the country, through a pact with the patent holder, at a price fixed by the Controller General of Patents, Designs and Trademarks.
Shares in Natco Pharma were up 6.5% at Rs 315.35 at 2:58 pm.