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The U.S.-India Business Council Expresses Unease Over Supreme Court of India's Ruling on Novartis Glivec Case: Seeks Reassurance

  The U.S.-India Business Council Expresses Unease Over Supreme Court of
  India's Ruling on Novartis Glivec Case: Seeks Reassurance for Investors

Decision will impact innovation and investment in India at a time when foreign
                       direct investment is most needed

Business Wire

NEW DELHI -- April 2, 2013

A decision was issued today by the Supreme Court of India, which denied a
patent on Glivec, an innovative cancer medication produced by pharmaceutical
company Novartis. The court’s decision cites Section 3 (d) of India’s patent
law and states that a patentee must prove enhanced efficacy of a medicine in
order to obtain a patent in India.

Over 40 countries including China, Russia, and Taiwan have already granted a
patent for Novartis’ Glivec and India now stands out as unique for not
granting a patent to this incremental innovation. The denial of the Glivec
patent may now exclude from patentability many other significant inventions in
the pharmaceuticals area.

U.S.-India Business Council (USIBC) President Ron Somers stated, “Innovation
requires the reward and protection of intellectual property. We are certain
India's leadership understands this, and that creating and maintaining an
environment that inspires and enables innovation is in India's ultimate,
long-term interest. Such an environment is crucial if India is to attract
investment in this or other highly complex sectors.”

“As India declares this the ‘decade of innovation,’ we hope that the
government of India will implement policies and practices that promote
innovation, fostering an environment that encourages India’s smartest minds to
produce new cures and treatments, as well as original technologies in other
sectors,” said Somers. “We believe that incremental innovation is an area
where India has a lot to offer and, in particular, where its robust generics
business can start to take positive steps towards innovation by improving on
therapies that already exist. We recognize the importance of generics to the
contribution of health once patents expire, but believe that in order for
India to become the ‘innovation nation of the 21st century,’ it should reward
and encourage innovation, including incremental innovation, by respecting the
significant resources and costs associated with finding new and better cures
to treat diseases.”

The U.S.-India Business Council was formed in 1975 at the request of the
United States and Indian governments to advance two-way trade and deepen
commercial ties. Today, USIBC is the premier business advocacy association
comprised of nearly 400 of America’s and India’s top companies dedicated to
enhancing the U.S.-India commercial relationship. Ajay Banga, President and
CEO of MasterCard, serves as chairman of USIBC.

                                www.usibc.com

Contact:

U.S.-India Business Council
Kathryn Van Dyken, 202-463-5768
kvandyken@uschamber.com