Swiss drug maker, Novartis faced a defeat in a patent issue as India's apex court dismissed its patent bid for a blockbuster cancer drug.

The company condemned the decision by the Supreme Court of India to dismiss its patent application. The decision by the Supreme Court came after legal battle for seven years by the company to gain a patent protection for an updated version of leukemia drug Glivec in the country.

The Supreme Court dismissed the company's challenge to the Section 3(d) of the Indian Patents act that restricted the company from obtaining a patent in the country. The court has given a landmark judgement and this will allow generic copies of imported medicine to be distributed in the country. Indian companies will now be allowed to continue production of a generic version of the drug.

Experts say that the significance of the judgement is not limited to India as it will allow Indian firms to continue to export generic versions of drugs throughout the world as India has emerged world's most important provider of cheap medicines and an important player in the fight against HIV/AIDS and other diseases in many parts of the world.

The company has been challenging a decision by the Indian patent office as well as the Intellectual Property Appellate Board (IPAB) to not grant a patent to the company. The company had filed a challenge to the IPAB's interpretation of section 3 (d) of Indian Patent Act. The company has been fighting a case since 2006 for the patent for its drug in the country.