Page 152 - CW E-Magazine (10-10-2023)

Pharmaceuticals Hydrocarbons

PATENT EVERGREENING STALLED PRICE FIXING

Pharma fi rms can supply J&J’s anti-TB generic to Domestic natural gas price fi xed at $9.20/mBtu

other countries for October 2023

Indian pharmaceutical companies the drug. J&J had attempted to extend its The government has fi xed a price of April this year, the formula governing area gas continues to be governed by
will now be able to supply generic patent by four years in India by fi ling for $9.20 per million British thermal units legacy fi elds was changed and indexed the old formula that takes a one-year
anti-TB drug ‘Bedaquiline’ to other a secondary patent. (mBtu) for the natural gas produced to 10 percent of the prevailing Brent average of international LNG prices and
countries without the fear of litiga- from the legacy fi elds of ONGC and Oil crude oil price. The rate was, however, rates at some global gas hubs with a lag
tion, with multinational pharma giant However, in April the patent offi ce India for October 2023. capped at $6.5 per mBtu. of one quarter. International prices had
Johnson & Johnson (J&J) confi rm- in India rejected the secondary patent of fallen in the reference period of July
ing that it will not enforce secondary the drug, that would have extended the However, the Petroleum Planning The new pricing formula was 2022 to June 2023. Therefore, the price
patents for Bedaquiline in any of the monopoly on key anti-TB drug – beyond and Analysis Cell (PPAC) said that approved by the Union Cabinet in of natural gas produced from diffi cult
low- and middle-income countries. the primary patent that expired in July this the price from the nomination fi elds of after the Kirit Parikh Committee on areas like deepsea KG-D6 block of
year. both the oil PSUs will be subject to a fair pricing of gas submitted its report Reliance Industries was cut by a steep
“The decision is intended to as- ceiling of $6.50 per mBtu. Two diffe- to the Ministry of Petroleum & Natu- 18 percent, in line with softening of
sure current and future generic manu- used only in the 134 low- and mid- The company had fi led a patent for rent formulas govern. rates paid for gas ral Gas (MoPNG). Subsequently, the benchmark international gas prices. For
facturers that they may manufacture dle-income countries,” J&J said in a fumarate salt of Bedaquiline in 2008 to produced from legacy or old fi elds of government revised the price of natural the six-month period starting October 1,
and sell high quality generic versions statement. extend its patent till the end of 2027. It national oil companies like Oil and gas under the administered price mech- the price of gas from deepsea and high-
of Sirturo without a concern that the was under review by the patent offi ce. Natural Gas Corporation (ONGC) and anism (APM) at $7.92 per mBtu for pressure, high-temperature (HPTP) areas
company will enforce its Bedaquiline The expiry of a patent on Beda- The strategy is called patent evergreen- Oil India Ltd. (OIL), and for newer April 8 to April 30. During May, June has been cut to $9.96 per mBtu from
patents, provided the generic versions quiline paved the way for generic ing used by companies to keep the prices fi elds lying in diffi cult-to-tap areas. and July, APM gas prices were fi xed at $12.12, the PPAC notifi cation said.
of Sirturo produced or supplied by manufacturers like Lupin and Macleods, high as it would keep the affordably $8.27 per mBtu, $7.58 per mBtu and
generic manufacturers are of good among others to initiate supplies soon, priced generic versions of the drug out Previously, the price of gas from $7.48 per mBtu, respectively. The prices Natural gas is used as a feedstock
quality, medically acceptable, and are ensuring cheaper and wider access to of the market. legacy fi elds and diffi cult fi elds, or in August 2023 and September 2023 in several industries, with major consu-
Deepwater, Ultra-Deepwater, and High were fi xed at $7.85 per mBtu and $8.60 mers being fertilisers (32 percent), city
LEADERSHIP CHANGES Pressure-High Temperature (HPHT) per mBtu, respectively. gas distribution (20 percent), power (15
fi elds, were revised bi-annually, with percent), refi nery (8 percent) and petro-
Advent puts in place a new team to helm Suven Pharma effect from April 1 and October 1. In Meanwhile, the price for diffi cult chemicals (5 percent).

US-based private equity fi rm Advent year, the PE fi rm had said it would fork
International has announced a new board out an additional Rs. 3,276-crore for Govt. raises windfall tax on crude oil to Rs. 12,000
of directors and management team at these outstanding equity shares of the
Suven Pharma, having completed the company from public shareholders. per tonne
acquisition of the Hyderabad-based con-
tract development and manufacturing As a majority stakeholder, Advent The Central Government on Sep- had hiked windfall tax on crude oil to from 6 per litre earlier and reduced
organisation (CDMO). ex-President and CEO of Patheon and plans to foster Suven’s capabilities to tember 29 hiked the windfall tax on Rs. 10,000 per tonne from Rs. 6,700 duty on Aviation Turbine Fuel (ATF)
Biogen; and Mr. Stefan Stoffel, ex-COO become a CDMO player globally, it said. domestically produced crude oil to per tonne earlier. The export duty on to Rs. 3.50 per litre from the earlier
The company will be led by of Lonza. Rs. 12,000 per tonne from Rs. 10,000 diesel was slashed to Rs. 5.50 per litre Rs. 4 per litre.
a management team comprising Meanwhile, there have been media earlier. The new rates came into effect
ex-GlaxoSmithKline head Mr. Annas- Last December, Advent International reports of Advent planning to rope in from September 30, 2023. ONGC signs crude oil sales agree-
wamy Vaidheesh, who will be Suven’s had agreed to acquire a 50.1 per cent new investors into a planned combi-
Executive Chairman, Dr. V. Prasada Raju stake in Suven Pharmaceuticals from nation of Suven Pharma and Cohance The government also decided to ment with MRPL
as Managing Director and Dr. Sudhir the Jasti family for Rs. 6,313-crore, Life Sciences. Advent owns a majo- slash windfall tax on export of diesel to
Kumar Singh as Chief Executive inking one of the largest pharma deals rity stake in Cohance Life Sciences, an Rs. 5 per litre from Rs. 5.50 per litre Oil & Natural Gas Corporation Ltd. end-March next year. “This agreement
Offi cer. in recent years. The acquisition was at active pharmaceutical ingredient (API) and Aviation Turbine Fuel (ATF) to (ONGC) has inked a Crude Oil Sales between the two group companies
Rs. 495 per share. manufacturer that was put together by Rs. 2.50 per litre from Rs. 3.50 per litre. Agreement (COSA) with Mangalore is expected to bring synergy and is
Suven founder Dr. Venkateswarlu combining three companies – RA Chem However, export of petrol continues Refi nery and Petrochemicals Ltd. expected to streamline the sale and
Jasti is on an advisory council, along An open offer for the remaining 26 Pharma, Avra Labs and ZCL Chemi- to remain out of the ambit of windfall (MRPL) which is the largest single- purchase transactions of crude oil
with Mr. Abhijit Mukherjee, ex- percent stake will be triggered within cals – all of which were acquired in tax, the Finance Ministry said. In its last location PSU refi nery in the country. from ONGC’s fi elds in Mumbai High,”
COO Dr. Reddy’s; Mr. James Mullen, stipulated timelines, Advent said. Last the past three years and are unlisted. revision dated September 15, the centre The current will be applicable till ONGC said.

152 Chemical Weekly October 10, 2023 Chemical Weekly October 10, 2023 153

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