Marksans Pharma net jumps up by 56% to Rs. 31 cr

Marksans Pharma has posted impressive performance during the second quarter ended September 2014 and its consolidated net profit increased by 55.7 per cent to Rs. 31.16 crore from Rs. 20.01 crore in the similar period of last year. Its EBDITA also moved up by 71.8 per cent to Rs. 50.96 crore from Rs. 29.66 crore. EPS worked out to Rs. 0.82 as against Rs. 0.53 in the last period.

The company's consolidated net sales for the first six months ended September 2014 increased by 35.3 per cent to Rs. 413 crore from Rs. 305 crore and its net profit moved up by 46 per cent to Rs. 56.63 crore from Rs. 38.79 crore in the corresponding period of last year. Its formulations business in Europe increased by 43 per cent to Rs. 271.20 crore from Rs. 189.70 crore and its US & North America formulation revenue improved by 46.7 per cent to Rs. 76.46 crore. Its revenue in Australia and New Zealand touched to Rs. 41.10 crore.

Patents - Utility

The Section 3(d) of the Indian Patent Act, amended six years ago, has already prohibited patenting of insignificant or minor improvements of known compounds. The Section has also given opportunity to anyone to object a patent before and after it is granted. It is this crucial section of the amended Patent Act that has prevented pharmaceutical companies from obtaining patents in India for  crucial section substances that are not actual inventions such as combinations or minor modifications of formulations of known compounds.

Frivolous patent filings are done by the companies to prevent and delay generic competition that could lead to lower prices and thus greater access to essential medicines. There is no doubt that granting patent protection for pharmaceutical substances involving only incremental innovation is against the public interest as such research does not involve any huge expenditure or time line unlike in the case of a new molecule.

A 20 years market exclusivity for any incremental innovation cannot be justified as powerful pharma companies charge any price for such products by strongly promoting them at the cost of patients. Currently, there is no price control on patented products world over. Take the case of Glivec, the high priced anti cancer drug of Novartis. 

Dispute on its patentability is on for the last more than five years. Although it is a clear case of incremental innovation, Novartis is not willing to give up its claim for patent and now it has approached Supreme Court. Since the amended Patent Act was notified in 2005, there are several where patent applications are being opposed by generic companies on patentability. Considering these facts, any move by the MNC lobby to influence the commerce ministry to circumvent the Section 3(d) has to be resisted. Doha declaration on TRIPS agreement and public health had confirmed the flexibilities allowed to WTO members to define patentability in the national laws.