NATCO seeking Compulsory License application for Baricitinib in India

 

On 3rd May 2021, NATCO Pharma Limited has received Emergency Use approval for Baricitinib tablets, 1mg, 2mg and 4mg strengths from Central Drugs Standard Control Organization (CDSCO) in India. Baricitinib in combination with Remdesivir, is used for treatment of COVID-19 positive patients.

Summary:

In light of the grave and life threatening public health emergency, NATCO Pharma moved before the Controller of Patents for Compulsory License of Drug Baricitinib in India. NATCO seeking the Compulsory License under Section 92(1) with Section 92(3) of The Patents Act, 1970.

Facts & Targeted Approach:

PATENT: IN270765 (INCYTE/Lilly: Expiry Date: Mar 10, 2029)

Patent Covers: Baricitinib Compound & its phosphoric acid salt.

CDSCO Approvals:

·         May 07, 2018: For the treatment of moderate to severe active rheumatoid arthritis in adult patients who have responded inadequately to, or who are intolerant to one or more disease modification anti-rheumatic drugs. Baricitinib may be used as monotherapy or in combination with methotrexate.

·         May 03, 2021: Emergency Use approval for Baricitinib tablets, 1mg, 2mg and 4mg strengths from CDSCO. Baricitinib in combination with Remdesivir, is used for treatment of COVID-19 positive patients.

Basis of Applying Compulsory License

·         Natco filed this Compulsory License application with respect to Indian Patent No. IN270765, which cover Baricitinib compound. This Compulsory License application was filed under Section 92 (1)& Section 92 (3) .

·         Section 92 deals with “Special provision for compulsory licences on notifications by Central Government”

·         NATCO seeks the Compulsory License being in the light of the grave and life threatening public health emergency which is currently prevailing in India due to the resurgence of the Covid-19 virus through a second wave since at least early February 2021.

·         Reports in the public domain as of 03.05.2021 indicate that the number of people in India affected by Covid-19 is over 2 Crores. The figures also state that while over 1.6 Crore people have recovered from Covid-19, over 34 lakh people continue to be afflicted, and there are officially over 2 lakh deaths. Daily newspaper reports show an alarming rise not only in the number of cases, but also in the number of fatalities due to Covid-19.

      Condition for fulfill the requirement of Section 92

·         Existence of a national public health emergency:

o   The National Disaster Management Authority declares a pandemic in March 2020 which continues to operate as of date.

o   There is in fact a grave national public health emergency. In support of this position, reliance is placed on the declaration of a pandemic by the NDMA as referred to above, which has not been withdrawn. Reliance is also placed on the DCGI/CDSCO Notification of 19.03.2020 which is operative across all drugs useful for Covid-19 treatment.

o   On 19.03.2020, the CDSCO through the DCGI, issued a pan-India and drug-agnostic notification declaring that any drug approved anywhere in the world for Emergency Use Authorisation would be entitled to the same status i.e. Emergency Use Authorisation through a Special Regulatory Pathway in India.

o   On 29.04.2021 CDSCO/DCGI has issued an Emergency Use Authorisation for manufacture of Baricitinib API and 1 mg, 2mg and 4mg tablets for Emergency Use in Covid-19 pandemic.

 

·         Unmet need in India:

o   Brand Olumiant (Baricitinib Tablet) by Eli Lilly facing lack of supply as well as lack of affordability in India.

o   As per the requirement to submit the working statement, Eli Lilly discloses the sales figure in Form-27 as:

2019

Strength

No of Tablet

Cost

2mg tablets:

263 unit

849569.00 INR

4mg tablets:

7997 unit

25832709.00 INR

Physician’s samples:

810 unit

2616543.00 INR

Total

9070 unit

29298821.00 INR

Average

 

3230 INR per Unit

 

2020

Strength

No of Tablet

Cost

2mg tablets:

1627 unit

5255698.00 INR

4mg tablets:

5763 unit

18616219.00 INR

Physician’s samples:

995 unit

3214149.00 INR

Total

8385 unit

27086066.00 INR

Average

 

3230 INR per Unit

 

·         Unmet need to due to lack of supply

o   Olumiant (Baricitinib Tablet) by Eli Lilly is currently not manufactured in India. The dependency to fulfil the need depend upon import from Spain.

o   There is a significant lack of access in terms of availability of such medicine to patients across India even assuming only 25% of the Covid-19 patients are prescribed Remdesivir injection, and therefore can also avail of the benefit of co-treatment with Baricitinib, this in itself works out a patient population of approximately 8.5 lakh patients.

 

·         Unmet need due to price/lack of affordability

o   Even if Eli Lilly undertakes to meet the full requirement, a significant barrier to access remains the price of the product. The per tablet cost is INR 3230.00. For a 14-day treatment regimen the price works out to INR 45220.00 per patient.

o   As is self-evident this is not only more than the median average income of most families, it is actually more than the monthly income of even most qualified professionals across India.

 

·         Conditions of Section 92(3) satisfied

o   Eli Lilly itself has a very narrow distribution network and it is inconceivable that it will ever be able to service the needs of the Indian population for Baricitinib in times of Covid-19 pandemic. Of necessity, any baricitinib product imported by Lilly will be limited in access to at best a few urban centers such as Delhi or Mumbai, if at all.

NATCO Offered the Baricitinib Tablet at an affordable cost as:

·         4 mg tablet: INR 30.00 per tablet, i.e. INR 420.00 for a maximum 14day course

·         2 mg tablet: INR 20.00 per tablet, i.e. INR 280.00 for a maximum 14day course

·         1 mg tablet: INR 15.00 per tablet, i.e. INR 210.00 for a maximum 14day course

NATCO is seeking for:

·         Manufacturing of API as well as Formulation under Compulsory License using in-house facility.

·         Offered 7% royalty to Lilly upon profit.

Find the Compulsory License copy here.

Comments

Popular posts from this blog

Delhi High Court Emphasizes the Importance of Claim Mapping in Patent Cases

Novartis v. Natco_The abandonment of a divisional patent application does not render the parent patent unenforceable.

The Jan Vishwas (Amendment of Provisions) Act, 2023: changes in the realm of Intellectual Property laws.