The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Trends Update — IP Constituencies: Novartis CEO Vasella Calls Upcoming Gleevec Decision a “Turning Point” for R&D in India

B&W_BlankMap-World-nobordersIndia and China both ranked in the third quintile of countries in the 2009 IPRI Report, with India ranking 46/115 and China ranking 68/115 for protection of IP rights.  In an earlier post, we predicted that this ranking would change rapidly, with both countries strengthening their IP regimes as their domestic R&D capacity ramped up.

Both countries have continued to win R&D collaborations and make investments in research, most recently including an Indian R&D park project by Alexandria (a U.S. developer) and Novartis’ $1 billion investment in R&D in China

However, China and India may not be moving at the same pace.  Novartis is facing its final appeal of lower court rulings in India denying it patent protection for Gleevec, and CEO Daniel Vasella calls the pending decision “the turning point” for Indian R&D in a recent article in The Economic Times (picked up by FierceBiotech).  He also reportedly says the decision to invest in R&D in China is “not driven by its bad experience with Gleevec in India.” 

Vasella has a dog in the fight, of course, but that’s the point.  The correlation between R&D spending and IP enforcement couldn’t be clearer.

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