India’s Comptroller-General of Patents last year ordered a compulsory licence of Bayer’s patented Nexavar drug to Indian pharma, Natco, on the basis that Bayer had not priced the drug at reasonable rates.

IPAB dismissed Bayer’s appeal against grant of the compulsory licence on 4 March 2013 with a written decision to be issued shortly. In dismissing the appeal, the Economic Times reports that Justice Prabha Sridevan stated: “The price of a drug should be seen from the point of the public affordability and not based on R&D expenses”.

Bayer has strongly criticized the IPAB decision, as well as the provisions of the Indian Patents Act on which it depends, and is expected to appeal the ruling to the High Court in Mumbai.