Novartis sees India lagging China in drug R&D

By Ben Hirschler

NEW YORK (Reuters) - Weak patent protection means India risks falling behind China in drug discovery, the head of corporate research at Novartis AG (NOVN.VX: Quote, Profile, Research, Stock Buzz) said on Tuesday.

The Swiss drugmaker this week announced plans for a $100 million research and development (R&D) center in Shanghai, which will focus on basic scientific research into the infectious causes of many cancers.

But Paul Herrling told the Reuters Health Summit in New York that Novartis was wary of committing to a similar research operation in India due to inadequate patent laws, despite India's strong track record as a center for pharmaceuticals production.

"It (the law) is not where we would like to have it. It is not quite at the same level as the other countries that have good patent protection," he said in a telephone interview from Shanghai.

Novartis recently reached a provisional agreement to acquire land in Hyderabad, India, but Herrling said his company's work there was likely remain focused on drug development, such as the conduct of clinical trials, rather than basic discovery.

"In India, we are a little bit more careful and we do not assume in the short-term that we will have a drug discovery center as we are planning now in Shanghai," he said.

Western drugmakers view both China and India as long-term sales drivers, at a time when growth in the United States and Europe is flagging due to mounting pressure on prices and a lack of new medicines emerging from research labs.

Novartis is currently embroiled in a legal battle to enforce its patent on blockbuster cancer drug Glivec in India, after a court in January rejected its patent application.  Continued...