MSD, in its plea, alleged that the Indian pharma company has violated its intellectual property right over its anti-diabetes medicines, Januvia and Janumet, by coming in the market with its own drugs containing the same salts
The Delhi High Court today refused to grant interim relief on a patent row to US pharmaceuticals major Merck Sharp & Dohme (MSD) which sought to restrain Indian firm Glenmark Pharmaceuticals to manufacture and market anti-diabetes drugs Zita and Zita-Met.
Justice Rajiv Sahai Endlaw dismissed the interim application of the multinational pharma major that the Mumbai-based firm be restrained from manufacturing and selling the anti-diabetes medicines on the grounds that the salt used in the drugs were not of generic nature.
MSD, in its plea, alleged that the Indian pharma company has violated its intellectual property right (IPR) over its anti-diabetes medicines, Januvia and Janumet, by coming in the market with its own drugs containing the same salts.
The development assumes significance as on Monday the Supreme Court had rejected the plea of Novartis AG for patent protection of its anti-cancer drug Glivec.
The high court, however, kept the main petition of the US firm pending for filing of evidence and other subsequent legal proceedings before its joint registrar on 16 July.
According to market sources, a strip of seven tablets of Januvia (50 mg and 100 mg) is priced at Rs300 while Glenmark's version costs around 30% less.
Reacting to the order, the US firm expressed disappointment over the decision and said it is considering all options including filing an appeal. “MSD is extremely disappointed with the decision of denial of injunction by the Delhi High Court against Glenmark for patent violation of our drugs Januvia and Janumet,” a company spokesperson said, adding that “MSD is considering all options, including an appeal of the decision.”
The unholy nexus between builders, politicians and officials must be held fully responsible for illegal constructions and subsequent loss of lives and revenues
Till the time of writing this report, 40 people have lost their lives and over 69 are injured when a seven-storey building collapsed at Daighar area in Shil Phata near Thane. However, this has raised some serious questions about the unholy nexus between fly-by-night builders, local political leaders and government officials.
The point in this case is that the area between Kalwa-Mumbra (near Daighar) and Diva and Dombivali is notorious for illegal construction activities. This area full of marshland and anyone who wants to be a builder buys truckloads of debris and empties it on the marshy land, thus killing the protection of mangroves. Soon after, a new building is erected on the land. The surprising factor is the speed at which the builders (less than three months for a four to five storeyed building) are now constructing these illegal structures.
The collapsed seven-storey building in Lucky Compound was built in just two months! While the Daighar police registered a case against builders Salil and Khalil Jamadar under Indian Penal Code (IPC) Section 304 (culpable homicide not amounting to murder), the brothers have become untraceable immediately after the incident.
Civic officials had said that the building was unauthorised and was built on forestland. Some local residents claim that the building was built over a nullah. This raises further questions.
How were the builders allowed to develop the land that is not suitable for residential purpose? What were the civic officials doing for over two months while the building was being erected from ground zero? And who provided water and electricity for the construction activities? Aren't these people also responsible for the deaths?
In the 1990s, this area was less populated than nearby places like Dombivali. In fact, Mumbra had a population of less than 45,000. In 2012, the small-time village has grown into a city with a population of over nine lakh. However, since majority of people are outsiders, Mumbra has only 1.75 lakh registered voters.
This overcrowding has led to ever-increasing demand for houses, with basic amenities and not spacious flats. This explains the sudden increase in chawl structures on marshy lands near Diva. While small flats are available for Rs4-Rs5 lakh each, newer flats cost between Rs16 lakh and Rs22 lakh. However, one can still find a room (obviously in illegal structure) for less than Rs2 lakh.
Another interesting aspect about these illegal construction activities is this use of the maximum available space. All such illegal buildings and chawls are built in such a way that there is no space in between them for any movement. In fact, there are no roads, so not even an auto-rickshaw can pass between these buildings. This serves two purposes, one the builder gets more money and second, in case the civic authorities decide to demolish it, their machinery simply cannot reach the spot.
Neither the civic officials nor the police attempt to stop this illegal construction because the builders are shielded by political godfathers. In addition, everybody is kept happy with payoffs too, but no one wants to take any action. Sometimes, even if they want, either the police fail to provide any cover to them, or the builder gets the shield from his political godfather. Therefore, everybody tries to make some moolah by ignoring the illegal activities, until some mishap happens.
In the current case also, the absconding builders would surrender before the police after making some settlement using their political connections. Then the case would go to court and the builders would be out of jail to start constructing another illegal building in some other corner of the city. In addition, we all will forget about it until the next mishap.
The only way to stop all this is to hold the civic officials and local elected representative also responsible along with the builder for such mishaps and deaths.
CERC has not found merit in Adani Power’s petition for relief on account of “force majeure” or “change in law” or “frustration of PPAs”, says Nomura Equity Research in its Quick Note
The Central Electricity Regulatory Commission (CERC) has ruled that Adani Power needs to be compensated for an “intervening period” with a “compensation package” over and above the tariff discovered through competitive bidding as regards its 1,000 MW PPA (Power Purchase Agreement) with Gujarat Urja Vikas Nigam and 1,424 MW PPA with Haryana distribution companies. CERC opines that the tariff relief could be variable in nature, in line with the hardship that Adani Power is suffering on account of the unforeseen events leading to non-availability of adequate coal linkage or increase in international coal price affecting the import of coal (Government of Indonesia’s coal pricing regulation issued in 2010), which has affected its performance under the PPAs, reports Nomura Equity Research in its Quick Note.
The eight-member committee to be constituted to work out the specifics of the compensatory tariff have been directed to consider pass-through of the net profit (post- government taxes/levy) earned by Adani Power’s Indonesian coal mines from the 2010 benchmark price regulation by Government of Indonesia relating to supply of coal to Mundra, potential revenue share on sale of power beyond target availability of Mundra, and possibility of using low GCV (gross calorific value) coal without affecting the operational efficiency of project.
According to Nomura’s Quick Note, the CERC is not unanimous in its view on the “compensatory tariff” to Adani Power for its Mundra PPAs; one CERC member has issued a “dissenting order” on this issue. In both orders, the CERC has not found merit in the petition for relief on account of “force majeure” or “change in law” or “frustration of PPAs”.
In Nomura’s view, CERC’s order establishing the need for a “compensatory tariff” over and above the bid tariffs for Adani Power’s PPAs for 2.42 GW offtake from its 4.62 GW Mundra facility is positive for the company’s earnings outlook, although the magnitude of relief is uncertain.
Nomura’s analysts have done an earnings forecast for Adani Power and the following assumptions have been made: (a) Coal receipt for Bunyu at 7.5mt/9 mt for FY14/15, (b) Domestic coal supply under FSA (fuel supply agreement) by CIL (Coal India) at 65%/65% of the committed 6.4mtpa quantity for FY14/15, (c) Mundra-II
(2 x 660 MW) operates at 50% utilization level at the existing PPA tariff of Rs2.35/kWh, and (d) Mundra-III (3 x 660 MW) operates at 80% utilization level, with PPA offtake to Haryana at existing bid tariffs.
The closing share price of Adani Power was Rs46.85 yesterday on the Bombay Stock Exchange. Nomura’s analysts have recommended a target price of Rs35 and a rating of ‘Reduce’.
In conclusion, the following table on Adani Power gives the earnings forecast and target price sensitivity till FY14-15: