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Bayer Corp. v. Union of India & Ors

LPA No. 359/2017, CM Nos. 17922/2017, 20160/2017, 33383-84/2017, 47167/2017 & 660/2018 (2019)

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Bayer Corp. v. Union of India & Ors

New Delhi High Court
LPA No. 359/2017, CM Nos. 17922/2017, 20160/2017, 33383-84/2017, 47167/2017 & 660/2018 (2019)

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Facts

Drug company Natco Pharma Ltd. (Natco) obtained a compulsory license to manufacture and sell a cancer drug made by Bayer Corp. (Bayer) (plaintiff) within India, over Bayer’s objection. Bayer learned that Natco had also started manufacturing the drug for export outside India and filed a petition with Indian authorities seeking a judgment preventing Natco from exporting the drug. Natco applied for permission to export the drug to China to conduct clinical studies and trials for regulatory purposes. Bayer argued that doing so would infringe its patent based on Indian patent law prohibiting the export of patented products or sale. Natco argued that it had not violated the law because it was exporting a small amount of the product for research, not commercial purposes. The New Delhi High Court issued a ruling on whether a research exemption existed in India, covering both Bayer’s dispute with Natco and a separate lawsuit Bayer had filed against Alembic Chemicals Ltd., an Indian company that had exported one of Bayer’s drugs to Europe for regulatory review.

Rule of Law

Issue

Holding and Reasoning (Bhat, J.)

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