According to one report in the Economic Times (13.03.2012):

The government has allowed a local drugmaker to make and sell a patented cancer drug at a fraction of the price charged by Germany’s Bayer AG, setting a precedent for more such efforts by Indian firms and heightening the global pharmaceutical industry’s anxiety over the use of the controversial compulsory licensing provision.

The outgoing patent controller of India, PH Kurian, on Monday granted the country’s first compulsory licence to Hyderabad-based Natco Pharma, permitting it to manufacture and market a generic version of Nexavar, a medicine used for treating liver and kidney cancer, in India for just 3% of the patented drug’s price in return for paying 6% royalty on sales to Bayer.

[…] Bayer is expected to legally challenge the decision. “We will evaluate our options to further defend our intellectual property rights in India,” a company spokesman said. […]

Source: “Natco Pharma bags licence to sell Bayer’s cancer drug Nexavar” (Economic Times, 13.03.2012)

Also see: “India patent ruling may open door for cheaper HIV drugs” (Economic Times, 13.03.2012)