How the Case has affected or impacted the subsequent Strategy of Each Company
Despite the fact that the Delhi High Court did not at all order Glenmark to pay any form of compensation or costs to Merck, it asked the Indian Company to pay the United States Company the expenses which arose out of the 2 year long litigation. The Judgment of the Court also noted that the difference in price between the tablets which were offered or presented by the two competitors firms but however noted the view that it could not form a basis for the rejection of the injunction in light of the infringement issue. The case highly affected Glenmark’s trading because at the end of trading on the day of the ruling, the company’s shares closed at a rate of Rs.1, 032.85, down by 2.33 per cent.
How the Case has affected both Industry Structure and Dynamics
The case between the two companies has greatly affected both the industry structure as well as the dynamics because it appeared to many people to be an order which was well reasoned. It has made many individuals, companies or organizations located in different companies to hold the view that it is now hopeful that the United States will at last “stop ranting” at the Indian Intellectual Property (IP) regime by saying that it has at most times been biased against firms who owned the IPs. It was a clear demonstration by the Indian Courts that in meritorious cases, they are capable of granting the aggrieved parties with patent injunctions. The dynamics on the patent infringement has made many people across the two countries to strongly believe that the court actually got it right. The case was also been known to have hugely turned on expert witnesses. This is because the Judge observed that there was unreliability of the defendant witnesses and even went ahead to explicitly state the fact in the same order. It is through the case that it can truly be shown that patent trials can be completed within a period of three months and that India as a country has really come of age especially with matters dealing with patent jurisprudence as a result of this judgment.
On the pricing aspect, it was noted in this specific case that the difference between the prices was not actually that significant based on a public health perspective in light of the availability of the substitutes. As a result, based on public interests, the injunction could not have been refused in any way. It was also asserted that the government was capable of regulating the prices of products using the price regulator in circumstances where it found that the prices were high or exorbitant. Through this patent case, it was ascertained that decisions to do with patents should not be used as the mechanism for price regulations.
Anti-diabetes drugs are indeed one of the top sellers in India as a nation in which approximately 65 million individuals are known to live with the disease. The number of people affected by the diseases is prone to increase to 100 million people by the year 20130. This is based on the statistics which were released by “The International Diabetes Federation”, which is an alliance that deals with national diabetes disease.