Novartis International AG : Supreme Court denial of Glivec patent clarifies limited intellectual property protection and

 Novartis International AG : Supreme Court denial of Glivec patent clarifies
limited intellectual property protection and discourages future innovation in
                                    India

Novartis International AG / Supreme Court denial of Glivec patent clarifies
limited intellectual property protection and discourages future innovation in
India . Processed and transmitted by Thomson Reuters ONE. The issuer is solely
responsible for the content of this announcement.

  *Patent denied despite global recognition of Glivec as a life-saving,
    breakthrough drug for certain forms of cancer, with patents granted in
    nearly 40 countries
  *Novartis has never been granted an original patent for Glivec in India
  *More than 9 out of 10 patients currently taking Glivec in India will
    continue to receive drug free of charge through Novartis Oncology Access
    programs
  *Patents are the foundation of innovative drug discovery and essential to
    advancing medical science and treatment of patients



Mumbai, India, April 1,  2013- A decision issued  today by the Indian  Supreme 
Court  regarding  the  Novartis   breakthrough  medicine  Glivec^®   (imatinib 
mesylate)  provides  clarification  on  Indian  patent  law  and   discourages 
innovative drug discovery essential to advancing medical science for patients.

Novartis has never been  granted an original patent  for Glivec in India.  The 
Court denied an  appeal challenging the  rejection of a  patent for Glivec,  a 
life-saving medicine  for  certain forms  of  cancer, patented  in  nearly  40 
countries including China, Russia, and Taiwan. Novartis filed a Special  Leave 
Petition with the Indian Supreme Court  in 2009 challenging the denial of  the 
Glivec beta crystal  form patent on  two grounds, based  on Sections 3(d)  and 
3(b) of the Indian patent law. In addition to seeking a patent for Glivec, the
company filed the case to help clarify these unique aspects of the patent law.

"Novartis has never been  granted an original patent  for Glivec in India.  We 
strongly believe that original innovation  should be recognized in patents  to 
encourage investment  in  medical  innovation  especially  for  unmet  medical 
needs," said Ranjit  Shahani, Vice  Chairman and  Managing Director,  Novartis 
India Limited.  "We brought  this  case because  we strongly  believe  patents 
safeguard innovation and  encourage medical progress,  particularly for  unmet 
medical needs. This ruling is a setback for patients that will hinder  medical 
progress for diseases without effective treatment options."

The primary concern of this case  was with India's growing non-recognition  of 
intellectual  property  rights  that  sustain  research  and  development  for 
innovative medicines. As a  leader in both  innovative and generic  medicines, 
Novartis strongly supports  the contribution of  generics to improving  public 
health once drug patents expire.

Novartis remains committed  to patients  and access to  medicine. Through  its 
full donation programs,  Novartis provides  Glivec free  of charge  to 95%  of 
patients prescribed the drug  in India, currently  more than 16,000  patients. 
The remaining 5% of patients are either reimbursed, insured, or participate in
a very  generous  co-pay program.  Since  Novartis began  its  first  donation 
program in 2002, the company has provided more than 1.7 billion dollars' worth
of Glivec to patients in India.

Engaging with society to improve access  to healthcare is integral to the  way 
Novartis operates. In 2012, our contributions  and programs in this area  were 
valued at USD 2 billion, providing medicine to more than 100 million patients,
and health education, infrastructure development and other programs to another
7.2 million people worldwide.

About Novartis
Novartis provides innovative  healthcare solutions that  address the  evolving 
needs of patients and societies. Headquartered in Basel, Switzerland, Novartis
offers a diversified portfolio to best meet these needs: innovative medicines,
eye  care,  cost-saving  generic  pharmaceuticals,  preventive  vaccines   and 
diagnostic tools, over-the-counter and animal health products. Novartis is the
only global company with leading positions in these areas. In 2012, the  Group 
achieved net  sales  of USD  56.7  billion,  while R&D  throughout  the  Group 
amounted  to  approximately  USD  9.3  billion  (USD  9.1  billion   excluding 
impairment  and  amortization  charges).   Novartis  Group  companies   employ 
approximately 128,000 full-time-equivalent associates and operate in more than
140  countries  around   the  world.  For   more  information,  please   visit 
http://www.novartis.com.

Novartis   is    on    Twitter.   Sign    up    to   follow    @Novartis    at 
http://twitter.com/novartis.
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