The EPAM Competition Law team successfully defended the global pharma corporation Novartis in a precedent-setting case over the breach of competition law by a distributor of Nativa, which had introduced a generic drug in violation of patent rights of the original drug formula.

In 2017, the arbitrazh court prohibited Nativa to sell Nilotinib-nativ, a generic drug, the manufacturing of which unlawfully used a Novartis patent. Despite the prohibition, Nativa transferred the rights to the drug to its distributor - Mamont Pharm, which started offering the generic drug under the vital drugs tenders and procurement programs in 2020.

Following the hearings, the FAS Russia qualified Mamont Pharm’s actions as unfair competition and ordered to discontinue the breach, as well as to transfer the illegally obtained income.

The fact of wrongdoing on Mamont Pharm’s part might affect the ongoing legal proceedings.

The EPAM team working on the matter was headed by Partner Anna Numerova and included Senior Associate Olga Denchenkova. 

“This is the first case, where the FAS Russia qualified the manufacturing and sale of a generic drug prior to the expiry of the original drug patent as unfair practice. The regulator’s decision acknowledged the stability and guarantee of protection of intellectual rights in Russia against violations, which is of greatest importance for the manufacturers of innovative drugs and for all bona fide pharmaceutical market professionals,” says Anna Numerova.