Novartis slumps on SC verdict

Novartis India has hit a new 52-week low at Rs.558.10 and though it has recouped some of its losses, it remains in the red, down almost 5% at Rs.571.

The stock is down after the much awaited verdict on its anti cancer drug, Glivec came in from the Supreme Court, which rejected its patent plea. Though this verdict is not in favor of the company, it is a great victory for the people of India as they will continue to get drugs for such life threatening illness at affordable costs. Glivec, which is used to treat chronic myeloid leukemia and other cancers, costs about $2,600 a month. The generic equivalent is currently available in India for just $175. The big MNC pharma companies are naturally not happy with this decision and say that rejection of the patent plea means that it will discourage investment in research and in efforts to improve existing drugs.