Side effect of Novartis case could be R&D project delays

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Following the legal setback to its challenge of Indian patent laws, Swiss drug maker Novartis is now having second thoughts about expanding its operations in the country. Among the projects that could be affected is its planned Hyderabad R&D project. Novartis had proposed an initial investment of about Rs 500 crore, reportedly among the largest R&D investments in India.

In an email response, a company spokesperson said: “Novartis has been evaluating various plots of land in Hyderabad and we have evaluated a plot in Sultanpur, but no final agreement has been reached. Lack of respect for international intellectual property laws will serve as a limiting factor on India’s desire to expand its research-based pharmaceutical industry. Novartis prioritises investments in R&D in countries which respect intellectual property.”

Sources said that even under a best-case scenario, the proposed research centre in Andhra Pradesh is likely to be delayed. State government sources say that the company has expressed certain environmental concerns with regard to the Sultanpur location. “We have now offered land in Jawahar Nagar, near Shameerpet,” the sources added. But the company is yet to respond. Interestingly, the company is seeking land near the proposed international airport in Shamshabad. “In effect, there has been no further move on the proposal,’’ the source told FE.