MIXED REACTIONS GREET INDIA'S NEW PATENT FRAMEWORK

Following the introduction of India's new World Trade Organisation-compliant framework for intellectual property on Jan. 1, industry reaction has been mixed on the expected effectiveness of the legislation. Sources at the Indian subsidiaries of international drug majors have broadly welcomed the new law, although US drug major Pfizer has sounded a note of caution on new product launches in India, in view of "ambiguities" in the legislation. Although the law now protects new drugs for 20 years, with only products marketed before 1995 able to be copied, foreign drug majors are likely to closely observe enforcement before proceeding further.

Meanwhile, sentiment among domestic manufacturers has also remained mixed. Leading Indian drugmaker Ranbaxy, which has aggressively expanded its generics portfolio overseas and boosted R&D spending, supports the new legislation. Nevertheless, with India contributing only 18% of the company's sales, Ranbaxy is expected to consolidate its strong position on the global market. The company's prospects contrast with those of fellow Indian drugmaker Cipla, which has voiced concerns that it may be unable to compete with the foreign multinational sector. Although the company is unlikely to withdraw any of its generic products marketed before 1995, including antiretroviral compound Triomune, the company fears that its annual research spending of some US$20mn will be unlikely to present significant competition to leading international drug producers.