Background
Novartis sought an Indian patent for the beta crystalline form of Imatinib Mesylate, the active ingredient in its leukaemia drug Glivec, on the basis that this crystalline form offered improved bioavailability, better flow properties, and thermodynamic stability over the free base compound already known in the prior art (covered by Novartis's own earlier patent, since expired).
Section 3(d): The Core Provision
Section 3(d) — introduced through the 2005 amendments implementing India's TRIPS obligations — excludes from patentability the "mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance." It was drafted specifically to prevent "evergreening": the practice of securing new, extended patent protection for minor variations of already-known drugs, which can delay generic entry and keep medicine prices high.
The Supreme Court's Holding
The Court held that Novartis had not demonstrated the beta crystalline form possessed significantly enhanced therapeutic efficacy compared to the known substance — improved physical properties like better flow characteristics or bioavailability, without a showing of superior clinical/therapeutic effect, did not satisfy Section 3(d)'s enhanced-efficacy requirement. The patent application was accordingly rejected.
Significance
- The ruling is widely regarded as a foundational precedent for pharmaceutical patent law in India, and has been closely studied internationally as a model for balancing patent incentives against public health access to essential medicines.
- It clarified that "efficacy" under Section 3(d) means therapeutic efficacy specifically — not any general improvement in a compound's physical or pharmacokinetic properties.
- The decision has shaped patent prosecution strategy for pharmaceutical innovators in India ever since: applicants seeking patents on new forms, salts, or polymorphs of known compounds must build a clear evidentiary record of enhanced clinical efficacy, not merely improved formulation characteristics.