Mumbai: Hyderabad-based Natco Pharma is examining the possibility of filing a compulsory licensing application for a generic version of Eli Lilly's Covid-19 drug baricitinib, potentially triggering a legal battle over intellectual property rights. If the licence is awarded, Natco will be free to make the drug in India.Branded Olumiant, it’s used for treating patients with rheumatoid arthritis, but Eli Lilly repurposed it for Covid-19 infections and gained approval from the US Food and Drug Administration (FDA) on November 19 under Emergency Use Authorisation (EUA) provisions. Natco has sought nod for the manufacture and marketing of baricitinib bulk drug and tablets in 1 to 4 mg versions in India, according to a December 4 update by Central Drug Standard Control Organisation (CDSCO).High Price Could be Ground for CLNatco filed the application with the CDSCO, which is the office of the Drug Controller General of India, on November 23. The CDSCO update on the status of applications by pharmaceutical companies related to Covid-19 drugs and vaccines showed.79672280The legal and patenting grounds on which Natco plans to build its case for a compulsory licence (CL), apart from the high price of Omuliant in the country, could not be known immediately. It’s also not clear if Natco has approached Eli Lilly for a voluntary licence. If it has and the US drugmaker declines, that could bolster Natco's application for a CL, experts said.Natco did not respond to questions sent by ET on Wednesday. Eli Lilly said it wasn’t aware of any approach by Natco. “Lilly has not been contacted regarding Natco’s request to investigate baricitinib through clinical trials in India,” a spokesperson said in an email.