Novartis slumps as Supreme Court rejects Glivec patent plea

Moneycontrol Bureau

Shares of Novartis India plunged more than 5 percent in morning trade on Monday after the Supreme Court rejected parent Novartis AG's patent plea on blockbuster cancer drug Glivec.

Supreme Court upheld tribunal and patent body order and said that Glivec failed test for innovation under the Patent Act.

Swiss pharma major Novartis has been battling since 2006 to get a patent for Glivec in India. India has refused to grant it a patent saying that it is not a new molecule but only an amended version of a known compound.

Novartis had approached the Supreme Court, seeking to overturn the clause, which restricts protection for new forms of existng molecules.

The court, though, has stated that the drug can't be patented as it doesn't pass test of novelty and inventiveness.

At 10:45hrs, Novartis India stock was down 4.5 percent at Rs 572.50 on BSE.