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NOVARTIS' INDIAN PATENT CASE HEARD IN COURT

February 15, 2007

A hearing began today in an Indian court in which Novartis is seeking to "gain clarity" on the country's laws regarding the protection of intellectual property, the company announced.

The hearing, taking place in the Chennai high court, is part of the drugmaker's efforts to obtain a patent for its cancer drug Glivec.

According to Novartis, Glivec has been granted patent protection in nearly 40 countries, including China. The company believes that patents help patients by creating incentives for companies to invest in new drugs. But many groups think a patent would inhibit access to Glivec and other life-saving medications. Novartis has countered by saying that the majority of Indian patients who take Glivec receive it at no cost through the drugmaker's patient-access program.

Novartis is not only challenging India's decision not to grant Glivec a patent, it is also disputing a section of Indian patent law.

A U.S. lawmaker, Rep. Henry Waxman (D-Calif.), sent a letter to Chairman and CEO of Novartis Daniel Vasella this week urging him to drop the case. "I do not dispute your right to apply for a patent or appeal a denial. I am concerned, however, that your attempt to influence domestic Indian law could have a severe impact on worldwide access to medicines."

According to Waxman, India supplies many countries with affordable generic drugs, and he believes the outcome of the case could have a negative affect on the world's generic market.