Patent row ends Brazil R&D plans at Novartis

Novartis has ended its plans to open an R&D unit in Manaus, Brazil,reports the South American Business Information news service, which quotes chairman Daniel Vasella as saying that the decision was made because the company will not invest in a country that does not protect intellectual property.

Mr Vasella said the Brazilian government's decision to produce locally generic versions of branded products, disregard patents and change trade agreements on IP was politically-motivated, the report said.

This year, Novartis will limit its investments in R&D in Brazil to $10 million, it was noted, and will invest only $2 million in its plant in Taboao da Serra, in Sao Paulo. The plan can produce 100 million units annually, but is running at only 80% of capacity, it was noted.