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Min Piyush Goyal Slams Pharmaceutical "Evergreening" Patents, Advocates for Affordable Healthcare Access

Commerce and Industry Minister Piyush Goyal criticized the practice of patent evergreening by pharmaceutical companies, which extends monopolies and hinders access to affordable medicines. He emphasized the need for patent law reforms to ensure equitable healthcare access for all

• By Pooja Chaturvedi Sah
• New Delhi
• Apr 28, 2025

News

In a bold statement on Sunday, 27 April, Commerce and Industry Minister Piyush Goyal criticized pharmaceutical companies for attempting to extend their monopoly on drugs through minor modifications to existing patents, a practice known as "evergreening." He condemned the tactic for depriving millions of people worldwide of access to affordable and essential medicines.

Pushing for Patent Reform to Ensure Fair Access 

Minister Goyal emphasized that certain multinational corporations were seeking to renew patents through insignificant changes to their drug formulations, allowing them to monopolize the market for extended periods. These practices, according to Goyal, are designed to ensure super-normal profits for the few, at the expense of equitable healthcare for the masses.

"Just for the profit of a few companies and their shareholders, the world has to suffer," Goyal said, underscoring the detrimental impact such actions have on public health. He also pointed out that these companies often push for additional patents by tweaking their drugs in ways that do not demonstrate real improvement in efficacy, a practice that undermines the purpose of the patent system.

Indian Patent Law and its Impact 

India's patent laws, specifically Section 3(d) of the Indian Patents Act, 1970, prevent patents from being granted on drugs that are only incrementally different from existing products unless they show a significant improvement in efficacy. This provision is critical in curbing the practice of evergreening, which allows pharmaceutical companies to maintain long-lasting monopolies on life-saving drugs.

Minister Goyal reiterated that certain multinational companies have lobbied for changes to these laws to facilitate patent extensions, but these attempts have been strongly resisted. The current framework in India balances innovation with the need for public access to affordable medicines, protecting against the monopolistic strategies of large corporations.

The Global Health Crisis and Patent Monopoly 

The issue of patenting practices had become especially pertinent during the COVID-19 pandemic, where the global demand for affordable treatments skyrocketed. Access to medicines like vaccines and antiviral drugs was hindered by patent monopolies, making it challenging for low- and middle-income countries to secure essential medicines at affordable prices.

India's stance on patent laws is crucial in the fight against these monopolies. By preventing the extension of patent rights through minor changes, the country has been able to ensure that generic drug manufacturers can produce affordable alternatives, which is especially important in the wake of global health emergencies like the past COVID-19 crisis.

Evergreening: A Barrier to Innovation 

The concept of "evergreening" refers to the strategy where pharmaceutical companies file for multiple patents on minor alterations to their drugs, such as changing the formulation or manufacturing process, to extend their market monopoly. While this practice may appear legitimate from a legal perspective, it stifles innovation by preventing generic companies from introducing more affordable alternatives.

The practice of strategic patenting has been heavily criticized for undermining the competition and artificially prolonging the monopoly of original drug manufacturers, thereby keeping drug prices high. Goyal emphasized that such practices run contrary to the goals of both patent and competition laws, which are designed to encourage genuine innovation while promoting public access to affordable medicines.

The Need for Global Reform in Patent Laws 

The debate around patent evergreening has reached a global scale, especially as pharmaceutical companies file patents for treatments related to COVID-19. Critics argue that these actions, which prioritize corporate profits over public health, demonstrated the need for urgent reform in global intellectual property laws.

In several countries, including Ecuador and Chile, there have been calls to utilize compulsory licensing—a mechanism that allows governments to authorize the production of generic versions of patented drugs in times of public health emergencies. Such efforts highlight the growing political will to challenge the monopoly of pharmaceutical companies and ensure that essential medicines are accessible to everyone, especially in low-income nations.

A Call for Sustainable Healthcare Access 

Minister Goyal's remarks underscore India's commitment to ensuring affordable healthcare for its citizens and the global community. He reaffirmed that quality healthcare is a key component of sustainable development, and that India will continue to pursue policies that increase access to healthcare while maintaining the integrity of the patent system.

As countries worldwide grapple with affordable healthcare, the issue of patent monopolies remains a central point of contention. The growing demand for affordable medicines has made it clear that patent laws must evolve to meet the needs of public health, particularly in the face of global health crises.

In conclusion, the fight against patent evergreening and the push for affordable healthcare is far from over. The government’s efforts to protect public health while encouraging innovation is crucial in ensuring that future generations can access life-saving treatments without facing prohibitive costs.