Implications of patents on cost of medicines in pharmaceutical industries

The Indian pharmaceutical industry with a market capital of 7.5 billion in 2011-2012 offers more than 27000 brands of medicines including average new launches of about 2000 products in year. Surprisingly, for the common ailment of pain alone over 3325 brands are available and choosing the most safe and effective drug amongst them is practically not possible by the poor patient. After Supreme Court’s decision in the V.P. Shanta Case[1], medical profession has been brought u/s 2(1) (o) of the CPA 1986. With implementation of the Patent (Amendment) Act 2005, the cost of medicine would be dearer to patients. In 2007, Madras High Court rejected the writ by Novartis which had challenged the validity of the Indian Patent Law. This lead cost benefits through cheaper medicines by Indian Companies like Cipla & Bayer, Delhi HC 2010 paved the way for cost relief to patients after litigating patent issues.