T-1652-02
2003 FC 1148
Genpharm Inc. (Applicant)
v.
Minister of Health, Attorney General of Canada and
Company X (Respondents)
Indexed as: Genpharm Inc. v.
Canada (Minister of Health) (F.C.)
Federal Court, Blais J.--Montréal, September 16,
17; Ottawa, October 3, 2003.
Patents
--
Practice
-- Listing of patents on Patent Register in accordance with
Patented Medicines (Notice of Compliance) Regulations -- On
strict interpretation of PM(NOC) Regulations, listed patent
need not be directly relevant to drug, use thereof as
approved by Health Canada through NOC, as decided by F.C.A.
in Eli Lilly v. Canada (Minister of Health) -- Latter
decision not giving any weight to dual purpose of Regulations
as stated in Regulatory Impact Analysis Statement i.e.
prevent infringement at same time as ensuring generic drugs
enter market as soon as possible -- Although patent eligible
for list, it cannot protect against use (different than that
listed) for which NOC applied for by generic drug
manufacturer.
In February 1999, the respondent Lundbeck Canada Inc.
(Company X in the style of cause) obtained a notice of
compliance (NOC) for "Celexa" (its brand name for citalopram,
an antidepressant of the Specific Serotonin Reuptake
Inhibitor type) to be used only for symptomatic relief of
depressive illness. That approved use was an old use that
could not be protected by patent. In early December 2001, the
patent was listed (for the treatment of dementia and
cerebrovascular disorders) on the Patent Register for drugs
that is maintained by the Minister. In December 2001, the
applicant Genpharm, a generic drug manufacturer, submitted an
abbreviated new drug submission (ANDS) in order to obtain the
NOC for its generic version of the drug citalopram
hydrobromide for the symptomatic treatment of depressive
illness. In its notice of allegation (NOA) of December 2001
addressed to Lundbeck, Genpharm indicated that it considered
the patent to be improperly listed because the use for which
it had received the NOC was not among the uses protected by
the patent and listed in the Register. Genpharm therefore
requested that the Therapeutic Products Directorate (TPD)
remove the patent from the Register. TPD refused to do so on
the basis that the patent did contain a claim to the use of
citalopram for the treatment of depression, as a claim for
the treatment of dementia and cerebrovascular disorders
included the treatment of depression. This was an application
for judicial review of that decision, for a declaration that
the patent was improperly listed, and for an order requiring
the Minister to remove the patent from the Register. The
issues were whether a patent with a claim for the use of a
medicine can be listed in the Patent Register if that use has
not been approved by the NOC, and what would be the
appropriate relief if the Court decided that the patent
should be delisted.
Held, the application should be dismissed.
It would seem that, reading the PM(NOC) Regulations as a
whole, the information in the Register should correspond to
the information supplied for the NOC, which would include the
use. Logic would seem to dictate that such would be the case.
However, a majority of the Federal Court of Appeal held, in
Eli Lilly Canada Inc. v. Canada (Minister of Health),
[2003] 3 F.C. 140, on a strict interpretation of the PM(NOC)
Regulations, that there was no necessary link between the NOC
and the patent list, beyond the requirements of section 4 of
the PM(NOC) Regulations. And that case is binding. On a
strict interpretation of subsections 3(3), 4(1), (2) and (7)
of the PM(NOC) Regulations, reading them in isolation, their
requirements have been met herein. It should be noted that
this interpretation in effect accepts that the sole purpose
of the PM(NOC) Regulations is to prevent patent infringement,
and gives no weight to the statement in the 1998 Regulatory
Impact Analysis Statement that the Regulations were intended
to provide effective enforcement of patent rights, while
at the same time ensuring that generic drugs can enter
the market as soon as possible. No doubt clearer language in
the PM(NOC) Regulations would go a long way to dispel the
ambient fog, and prevent the abundant litigation which is
sure to continue as long as the ambiguity remains.
Lundbeck argued that the depression covered by the new use
was somehow different from the depression covered by the NOC,
which could give rise to infringement. The infringement issue
can be approached in two ways. Either the patent is delisted
so that there is no need for the generic manufacturer to
allege non-infringement under section 5 of the PM(NOC)
Regulations, or non-infringement is alleged in regard to the
claims in the patent list. The proper forum is the allegation
of non-infringement. First, the direction given by the
Federal Court of Appeal in Eli Lilly makes delisting
problematic. Second, as argued by the Crown respondent and
supported by the decision of the Federal Court of Appeal in
Apotex Inc. v. Canada (Minister of National Health and
Welfare) (2000), 181 D.L.R. (4th) 404 (F.C.A.) the
PM(NOC) Regulations offer a full and complete remedy to the
problem.
Clear guidance as to the appropriate remedy can be found
in Apotex: "There being no mandatory duty on the
Minister to refuse to add or delete patents from the Register
under subsection 3(1), there is no basis for the
mandamus, injunctive or declaratory relief as sought
by the appellants." As to mandamus, that remedy was
not available because, as Gibson J. found in the Federal
Court Trial Division decision in Apotex Inc. v. Canada
(Minister of National Health and Welfare) (1998), 82
C.P.R. (3d) 68 (F.C.T.D.), there were adequate alternative
remedies.
Even though the TPD told the applicant that it would
reconsider the decision of not deleting the patent once the
opinion of the Canadian Intellectual Property Office was
received, the failure to act on this promise was not a denial
of procedural fairness. The Minister "may consult with
officers or employees of the Patent Office"; he was under no
obligation to do so. The Minister was not obliged to act in
any haste, especially since other remedies were available.
Even if the patent was ineligible for listing in the Patent
Register, the "alternative remedies" referred to by Gibson J.
in Apotex would be sufficient to resolve the case at
bar.
In the Apotex (FCA) decision, the Court stated that
there exists relief in the case where a generic manufacturer
is prejudiced by the inclusion of ineligible patents on the
Register: dismissing the application where the Court is
satisfied that the patents at issue are not eligible for
inclusion on the Register; making an order as to costs taking
that fact into account; and awarding damages or profits for
losses because of a subsection 6(1) application.
The issue of remedies for ineligibility of the patent was
moot, since it appeared that the patent was eligible.
However, although the patent is eligible for the list, it
cannot protect against the use for which the NOC has been
applied for by Genpharm.
statutes and regulations judicially
considered
Federal Court Act, R.S.C., 1985, c. F-7, s.
18.1 (as enacted by S.C. 1990, c. 8, s. 5). |
Federal Court Rules, 1998, SOR/98-106, r.
152(3). |
Patented Medicines (Notice of Compliance)
Regulations, SOR/93-133, ss. 2 (as am. by
SOR/98-166, s. 1; 99-379, s. 1), 3 (as am. by
SOR/98-166, s. 2), 4 (as am. idem, s. 3), 5 (as
am. idem, s. 4; 99-379, s. 2), 6(1) (as am. by
SOR/98-166, s. 5), (5)(a) (as am. idem),
(10)(b) (as am. idem), 8 (as am.
idem, s. 7). |
cases judicially considered |
Eli Lilly Canada Inc. v. Canada (Minister of
Health), [2003] 3 F.C. 140; (2003), 23 C.P.R. (4th)
289; 300 N.R. 76 (C.A.). |
Warner-Lambert Canada Inc. v. Canada (Minister
of Health) (2001), 12 C.P.R. (4th) 129; 206 F.T.R.
177 (F.C.T.D.). |
Apotex Inc. v. Canada (Minister of National
Health and Welfare) (2000), 181 D.L.R. (4th) 404; 3
C.P.R. (4th) 1; 252 N.R. 72 (F.C.A.); Apotex Inc. v.
Canada (Minister of National Health and Welfare)
(1998), 82 C.P.R. (3d) 68 (F.C.T.D.). |
Baker v. Canada (Minister of Citizenship and
Immigration), [1999] 2 S.C.R. 817; (1999), 174
D.L.R. (4th) 193; 14 Admin. L.R. (3d) 173; 1 Imm. L.R.
(3d) 1; 243 N.R. 22; Conille v. Canada (Minister of
Citizenship and Immigration), [1999] 2 F.C. 33;
(1998), 15 Admin. L.R. (3d) 157; 159 F.T.R. 215
(T.D.). |
H. Lundbeck A/S v. Canada (Minister of
Health), 2003 FC 1145; [2003] F.C.J. No. 1481
(T.D.) (QL); RJR-- MacDonald Inc. v. Canada
(Attorney General), [1994] 1 S.C.R. 311; (1994),
111 D.L.R. (4th) 385; 54 C.P.R. (3d) 114; 164 N.R. 1;
60 Q.A.C. 241; Friesen v. Canada, [1995] 3
S.C.R. 103; (1995), 127 D.L.R. (4th) 193; [1995] 2
C.T.C. 369; 95 DTC 5551; 186 N.R. 243; Bayer Inc. v.
Canada (Attorney General) (1999), 87 C.P.R. (3d)
293; 243 N.R. 70 (F.C.A.); Deprenyl Research Ltd. v.
Apotex Inc. (1995), 60 C.P.R. (3d) 501; 180 N.R.
323 (F.C.A.). |
APPLICATION for judicial review of Minister of Health's
refusal to remove a Canadian patent from the Patent Register
even though the use listed did not correspond to the use for
which the patent had been approved and for which it had
received a notice of compliance. Application dismissed.
Timothy H. Gilbert for applicant. |
Marie Lafleur for respondent Lundbeck Canada
Inc. (Company X). |
Marie A. Crowley for respondents Minister of
Health and Attorney General of Canada. |
Gilbert's, Toronto, for applicant. |
Fasken, Martineau, DuMoulin LLP, Toronto,
for respondent Lundbeck Canada Inc. (Company X). |
Deputy Attorney General of Canada, for
respondents Minister of Health and Attorney General of
Canada. |
The following are the reasons for order rendered in
English by
[1]Blais J.: This is an application for judicial review
pursuant to section 18.1 [as enacted by S.C. 1990, c. 8, s.
5] of the Federal Court Act, R.S.C., 1985, c. F-7, in
respect of the Minister of Health's (the Minister) refusal to
remove Canadian Patent No. 2049368 (the 368 patent) from the
Patent Register established pursuant to the
Patented Medicines (Notice of Compliance) Regulations,
SOR/93-133 as amended (the PM(NOC) Regulations).
[2]The applicant Genpharm Inc. seeks a declaration that
the 368 patent is improperly listed, as well as an order
requiring the Minister to remove the 368 patent from the
Register.
[3]In the alternative, Genpharm seeks an order requiring
the Minister to comply with the Therapeutic Products
Directorate's (TPD) und ertaking to reconsider the decision
not to delist the 368 patent and requiring that such
reconsideration be done on proper principles.
PRELIMINARY MATTERS
[4]Counsel for the respondent Company X brought up the
matter of the application being out of time, since the
decision of the Minister not to delist the patent was dated
May 29, 2002, but the application for judicial review was
filed only September 27, 2002, beyond the 30 days limitation
provided for in subsection 18.1(2) of the Federal Court
Act. This subsection reads as follows:
18.1 . . . .
(2) An application for judicial review in respect of a
decision or order of a federal board, commission or other
tribunal shall be made within thirty days after the time the
decision or order was first communicated by the federal
board, commission or other tribunal to the office of the
Deputy Attorney General of Canada or to the party directly
affected thereby, or within such further time as a judge of
the Trial Division may, either before or after the expiration
of those thirty days, fix or allow.
[5]The decision was given on May 29, 2002; the applicant
asked for a reconsideration of the decision on June 12, 2002
and received a letter from the Therapeutic Products
Directorate, dated June 25, 2002, stating that the TPD would
be willing to reconsider the decision once further advice had
been received from the Canadian Intellectual Property Office
(CIPO). I find that this letter created a reasonable
expectation in the applicant that the decision would be
reviewed. The applicant was therefore justified in not filing
an application by June 28, 2002, 30 days after the first
decision. Since the TPD had not communicated any further on
the matter by early September, the applicant sent a letter on
September 10, 2002, to make enquiries. This letter was not
answered, and the applicant filed an application on September
27, 2002. Subsection 18.1(2) allows me to extend the time
granted to the applicant to file his application, and I find
the applicant in this matter acted within a reasonable time.
The application is therefore within the time limitation
prescribed by the Federal Court Act.
[6]Prothonotary Lafrenière granted a protective
order on October 4, 2002, amended November 25, 2002,
following a motion from the applicant Genpharm. The order
provided that any document or thing, relating to the identity
of the drug, the identity of Company X who is the distributor
of the drug, the identity, contents and review status of the
applicant's abbreviated new drug submission for th e Genpharm
drug, and the identity of the patent could be subject to this
order. This explains the style of cause of the present
proceeding. Pursuant to paragraph 19 of the protective order
and subsection 152(3) of the Federal Court Rules, 1998
[SOR/98-106], this Court has the discretion to vary this
order. The present reasons for order identify the respondent
Lundbeck Canada Inc., as well as the drug citalopram and the
368 patent at issue.
FACTS
[7]On December 3, 2001, Genpharm submitted an abbreviated
new drug submission (ANDS) in order to obtain the notice of
compliance (NOC) for its generic version of the drug
citalopram hydrobromide in tablets of 10 mg, 20 mg and 40 mg
strengths. This drug is to be used for the symptomatic
treatment of depressive illness.
[8]Citalopram is an antidepressant of the Specific
Serotonin Reuptake Inhibitor (SSRI) type. At this time, the
only manufacturer and seller of this drug is Lundbeck Canada
Inc. which markets it in strengths of 10 mg, 20 mg and 40 mg
under the brand name Celexa®. Lundbeck was issued an NOC
for Celexa in February 1999. The NOC specifies that Celexa is
to be used only for symptomatic relief of depressive
illness.
[9]Lundbeck holds two patents on citalopram tablets, one
relating to a novel intermediate step, patent No. 1237147
(the 147 patent), and the other relating to the use of
citalopram, patent No. 2049368 (the 368 patent). In early
December 2001, both patents were listed on the Patent
Register for drugs which is maintained by the Minister.
[10]In its notice of allegation (NOA) addressed to
Lundbeck and dated December 11, 2001, Genpharm indicated that
it considered both patents improperly listed, patent 147
because it related to an intermediate process, and patent 368
because the use for which it had received its NOC, i.e. the
symptomatic relief of depressive illness, was not among the
uses protected by the patent and listed in the Register.
[11]Since the patent list submitted for the Register must
set out a Canadian patent that contains a claim for the
medicine itself or a claim for the use of the medicine,
Genpharm requested that TPD remove the 147 patent since it
included no claim to the medicine or the use of the medicine.
TPD removed the 147 patent from the Patent Register on
January 7, 2002.
[12]The attempt by Genpharm to have patent 368 removed is
the subject of the present proceedings.
[13]In a letter addressed to Genpharm's solicitors and
dated May 29, 2002, TPD refused to remove patent 368 from the
Register. The letter, signed by Anne Bowes, a patent officer
with the TPD, states in part:
CELEXA contains the medicinal ingredient citalopram
hydrobromide and is indicated for the treatment of depressive
illness. Pursuant to paragraph 4(2)(b) of the Patented
Medicines (Notice of Compliance) Regulations, the patent
must contain a claim to the medicine, or to the use of the
medicine, to be eligible for listing on the Patent Register.
It is the Therapeutic Products Directorate's (TPD)
position that only patents for indications which have been
approved by TPD, should come under the scope of the
Patented Medicines (Notice of Compliance)
Regulations. As stated above, the approved
indication for this drug is for the treatment of depressive
illness.
The 368 patent, entitiled [sic] "Treatment of
Cerebro-Vascular Disorders", contains 21 claims. Claims 1 to
7 are for the use of a compound of formula I, which includes
citalopram, for the manufacture of a medicament for the
treatment of cognitive disorders or amnesia associated with
dementia and of cerebro-vascular. Claims 8 to 14 are for
pharmaceutical composition or medicament for the treatment of
dementia and cerebrovascular disorders. Claims 15 to 21 are
directed to a method in the production of a pharmaceutical
preparation useful in the treatment of dementia and
cerebrovascular disorders.
. . . the Canadian Intellectual Property Office
(CIPO) was asked for an opinion as to whether the 368 patent
contained a claim for the use of citalpram [sic] for
the treatment of depressive illness. It was concluded by the
officials from CIPO that the 368 patent does contain claims
to the use of citalopram for the treatment of depression.
Specifically, in claim 8, the treatment of dementia and
cerebrovascular disorders (which is not restricted as it is
in claim 1), includes the treatment of depression.
Therefore, the 368 patent contains a claim for the use of the
medicine. Accordingly, the 368 patent will remain listed on
the Patent Register. [Emphasis added.]
[14]Claim 8 of the 368 patent reads as follows:
8. A pharmaceutical composition or medicament for the
treatment of dementia and cerebrovascular disorders
comprising an amount of a1-[3-dimethylamino)propyl]-1-
phenylphthalane of the formula: wherein R1 and R2 each are
selected from the group consisting of halogen,
trifluoromethyl, cyano and R-CO~; wherein R is an alkyl
radical with 1 to 4 C-atoms inclusive, or a
pharmaceutically-acceptable acid addition salt thereof, which
is effective for such purpose, and a
pharmaceutically-acceptable diluent or carrier. [Emphasis
added.]
[15]The opinion on which the TPD based its decision was
given by Mr. Jim Freed from the CIPO. It simply asserts that
the treatment of dementia includes the treatment of
depression. The communication is by way of e-mail, reproduced
in part below:
Claims 1 to 7 are not directed to the use of citalopram
for the treatment of depression because it is limited to a
medicament for the treatment of cognitive disorders or
amnesia associated (. . .) with dementia and of
cerebrovascular disorders. In other words, the claims are
directed to the treatment of cognitive disorders or amnesia,
which is not taught in the prior art.
Claims 8 to 14 do not have the restriction as defined in
paragraph 1.
Claim 8 is directed towards I) the treatment of dementia
and cerebrovascular disorders includes the treatment of
depression and ii) the compound of formula I includes
citalopram. Moreover, claim 14 which is directly dependent
upon claim 8 refers to the compound of formula I being
citalopram.
. . . Claim 15, again, is directed towards I)
the treatment of dementia and cerebrovascular disorders
includes the treatment of depression and ii) the compound of
formula I includes citalopram. . . .
In conclusion, patent 368 contains claims to the use of
citalopram for the treatment of depression and HC should be
informed accordingly.
[16]On June 12, 2002, Genpharm addressed a letter to the
CIPO, asking for a review of the opinion given by Jim Freed,
as well as a letter to TPD, requesting that the Minister
review her decision following reconsideration by CIPO.
[17]In a letter dated June 25, 2002, the TPD undertook to
review the decision concerning the listing of the patent once
the opinion of the CIPO would be received.
[18]There has been no further correspondence on the
matter. Genpharm filed application for judicial review on
September 27, 2002. In view of Lundbeck's interest in the
listing of its patent, it wa s named respondent to the
application along with the Minister.
ISSUES
[19] (1)
Can a patent with a claim for
the use of a medicine be listed in the Patent Register
if that use has not been approved by the notice of
compliance? |
(2)
In the event that the Court
decided that the patent should be delisted, or that the
matter should be reconsidered by the Minister, what
would be the proper relief? |
(i) by way of
mandamus or a declaration? |
(ii) enjoining the Minister
to reconsider her decision, on proper principles? |
(iii) under the PM(NOC)
Regulations? |
EVIDENCE
Expert Evidence
[20]Genpharm submitted evidence by way of affidavit from
two experts, Dr. Lon S. Schneider and Dr. Joel Sadavoy. Both
are qualified experts according to their
résumés in the fields of psychiatry and
geriatrics.
[21]Both experts agree that depression should not be
subsumed under cerebrovascular diseases. Dr. Schneider,
commenting on the opinion of Mr. Freed (A.R., Vol. 1, tab 2c,
at p. 78):
. . . `depression as a sequela to
cerebrovascular disease' (. . .) the validity of
such a specific condition is not supported by science or
fact. It postulates (although it doesn't go into detail) that
there is a specific depression or depressive symptom that is
a direct result, i.e. `sequela', of a range of
cerebrovascular disorders or Alzheimer's disease, and that
this depression is different from other depressions or
depressive symptoms, seen in association with other
conditions. Such a claim would be termed `pseudo-scientific',
because it claims a specificity that is not valid. Second,
even assuming for the moment the validity of a depression
symptom as a sequela to cerebrovascular disorders, this is
not depression described as the indication for citalopram in
the monograph and prescribing information.
[22]Dr. Sadavoy, also reacting to the opinion of Mr. Freed
(A.R., Vol. I, tab 3c, p. 123):
Mr. Freed links anxiety, depression, loss of memory, etc.
into one category of psychiatric symptoms, implying that they
achieve equal status in the diagnosis of the disorder. This
is a misreading of the way clinicians deal with the diagnosis
of dementia and its consequences, including that form caused
by cerebrovascular disorder. (. . .) With regard to
depression, the large majority of patients with dementia do
not suffer from this secondary problem (. . .).
Taking this into account, it is clinically strongly
inadvisable to suggest that the treatment of dementia and
cerebrovascular disorders routinely encompasses the treatment
of depression with the same drug. Any drug that is available
for the treatment of dementia is first and foremost a
treatment of cognitive disorder. (. . .) There is
no drug in the antidepressant family that addresses the
cognitive and the depressive component of dementia at the
same time.
With specific regard to the compound citalopram, this drug
is not advocated for the primary treatment of dementia.
[23]Lundbeck submitted the evidence of Dr. Gauthier (also
an expert witness in proceedings T-122-02 [H. Lundbeck A/S
v. Canada (Minister of Health), 2003 FC 1145; [2003]
F.C.J. No. 1481 (T.D. (QL)).
[24]Dr. Gauthier speaks of the prevalence of depression in
persons who suffer from dementia, and refers to the 1992
study to show that citalopram offers promise in the treatment
of a wider array of symptoms than simply depression. His
conclusions are reproduced below (Dr. Gauthier's affidavit,
doc. 39, Court File):
There is significant overlap between patients from
dementia and those suffering depression.
There are sufficient data and biological plausibility to
support a broader action of citalopram as an antidementia
drug, above and beyond its original use as an
antidepressant.
Many persons suffering from dementia are already being
prescribed citalopram.
There is nothing stopping a physician, if he believes it
is in the best interests of his patients, from prescribing
citalopram for the treatment of dementia notwithstanding that
citalopram has not been approved for this use by Health
Canada.
[25]With respect, these conclusions do not enlighten us as
to the use of citalopram as something other than an
antidepressant, which is its old, established use.
[26]Dr. Gauthier only refers to four studies that have
looked at the effects of citalopram in depressed and
non-depressed patients with Alzheimer's disease, and
highlights one conducted in 1992. I note that the studies
attached to his affidavit at tab 3b deal only with the
treatment of depression in older adults; at tab 3c we find
the 1992 study.
[27]"Biologica l plausibility" strikes me as a
particularly vague term which would certainly not meet the
requirements of safety and efficacy for human use. The fact
that many persons suffering from dementia are already being
prescribed citalopram simply follows on the f irst statement,
that there is considerable overlap between dementia and
depression. Without qualification, this last statement is
meaningless. Is there overlap between disease and
depression?
[28]Finally, as to the last conclusion, there is nothing
stopping a physician from prescribing anything. The
likelihood, however, of a physician treating dementia
with citalopram, contrary to all the medical evidence we have
seen so far, including Dr. Gauthier's submitted literature,
is a m atter Dr. Gauthier carefully avoids.
Interpretation of the PM(NOC) Regulations
[29]Genpharm and Lundbeck differ sharply on the proper
interpretation of the PM(NOC) Regulations to determine
whether or not the use protected by the patent list must be
covered by the NOC. Adding to the confusion are some
guidelines produced by the TPD.
[30]Richard Pike, Senior Vice-President of Research and
Development and Regulatory Affairs at Genpharm, states the
following in his affidavit (Richard Pike's affidavit, at p.
4):
In order for a patent to be eligible for inclusion on the
Patent Register, it must contain a claim for the approved
medicine or the approved use of a medicine in respect of the
particular drug outlined in the submission for a NOC. The
Minister has published guidances that make it clear that only
patents claiming the approved medicine or an approved use of
the medicine are eligible for listing.
[31]In particular, Mr. Pike refers to the following
documents, both published by the TPD:
(1) "Guidance for Industry: Patented Medicines
(Notice of Compliance) Regulations Guidelines";
and |
(2) "Issue Analysis Summary: Patented Medicines
(Notice of Compliance) Regulations". |
[32]The first document seeks to guide the industry as to
the various requirements of the PM(NOC) Regulations to allow
a patent to be listed on the Patent Register. It does state
that the PM(NOC) Regulations take precedence.
[33]Under "Patent Eligibility", section 3.2.3, one
reads:
A patent will be eligible [for the Patent Register] where
it is relevant to the drug as described by the dosage form,
strength, and route of administration. In general, the
factors for determining the eligibility of a patent are:
· the patent must
contain a claim for the medicine itself or a claim for
the use of the medicine. For purposes of this
determination "the medicine" is as described in the
related drug submission for which a Notice of
Compliance is issued; |
[34]In the second document, the following passage
appears:
4.2.1 Therapeutic Use/Indication
. . .
Indication [of therapeutic use in the form used to apply
for listing] is only used as a criteria of eligibility in the
case of those patents that are limited in their application
to a specific indication(s) to the exclusion of any others.
Patents are listed against drugs which have received a NOC.
Where an indication has not been subject to a NOC a patent
limited to that indication should not be eligible for
inclusion on the register.
In accordance with the Regulatory Impact Analysis
Statement (SOR 133/93), the Regulations were established to
link the granting of marketing approval for a drug that
relies on the earlier approval of a related drug to the
patent protection established by relevant product and use
patents pertaining to the earlier approved medicine. As
such, only patents for indication which have been approved by
Health Canada should come under the scope of the
Regulations. [Emphasis added.]
[35]Ms. Louise Gariépy, Associate Director,
Scientific and Regulatory Affairs at Lundbeck Canada Inc.,
testified as follows in her affidavit (Louise
Gariépy's affidavit, at page 2, doc. 30):
Notwithstanding that the notice of compliance issued to
Lundbeck approves the use of the 10mg, 20mg and 40mg tablets
of citalopram for the symptomatic relief of depressive
illness, there is nothing in the relevant legislation which
enjoins including in the patent list patents which neither
claim a medicine for which a notice of compliance has been
issued nor claim a use for which a notice of compliance has
been issued. Indeed, the Patented Medicines (Notice of
Compliance) Regulations (The Regulations) require only that
the patent be relevant to the dosage form, strength and route
of administration of the drug for which the notice of
compliance was issued. The 368 patent claims a use for
citalopram hydrobromide having the same dosage, strength and
route of administration as that for which the notice of
compliance was issued.
SUBMISSIONS OF THE PARTIES
Genpharm
[36]The applicant submits that patent 368 is improperly
listed and should be removed from the Patent Register. The
claims for use of the medicine, dementia, ischemia,
cerebrovascular disease and Alzheimer's, are not uses
approved through the NOC process. The only use recognized by
the NOC is f or symptomatic relief of depressive illness.
This use is an old use, and therefore not entitled to the
protection offered by the Patent Register.
[37]The Minister is under a duty to maintain the Patent
Register and should be required to delist the 368 patent. In
the alternative, he should be ordered by the Court to
reconsider, on proper principles, the decision not to delist
the 368 patent.
[38]Mr. Freed's position, that the 368 patent covers the
treatment of depression, thus rendering the listing valid, is
untenable: nothing in the claims refers to the treatment of
depression, and were the patent claims construed so as to
include the treatment of depression, these claims would not
give rise to an infringement since citalopram is a well-known
antidepressant, in the words of the patent itself.
[39]The applicant argues that the proper construction of
the PM(NOC) Regulations, as seen in the guidance documents
published by the TPD, demonstrates the need for a link
between the NOC and the patent list.
Lundbeck
[40]The respondent on the other hand, submits that the
only requirements as to content for inclusion on the Register
are found in sections 3 [as am. by SOR/98-166, s. 2] and 4
[as am. idem, s. 3] of the PM(NOC) Regulations; no
mention is made of the need for the use claimed to be same
use as is approved by the NOC. The conditions for the
inclusion of a patent on the Register are as follows:
- the patent can only be included after issuance of the
notice of compliance (subsection 3(3));
- a patent list can only be submitted in respect of a drug
for which a notice of compliance has issued or has been
applied for (subsection 4(1));
- the patent list can only include a patent that contains
a claim for the medicine itself or a claim for the use of the
medicine (paragraph 4(2)(b));
- the patent must be relevant to the dosage form, strength
and route of administration of the drug (paragraph
4(7)(b)).
[41]The respondent submits that the requirements are
fulfilled in this instance. In reply to Genpharm's arguments
that the TPD published guidelines that seem to require that
patented use be covered by the NOC, Lundbeck states that the
Minister is usurping the role of the legislator in adopting
the position that it would refuse to list patents for
non-approved indications.
[42]The respondent also contends that CIPO has confirmed
that the patent contains a claim for depression, the approved
use of citalopram. Genpharm has not challenged the validity
of the patent and the patent is presumed valid. Finally,
Lundbeck argues that the issue is already being dealt with in
application T-122-02.
Minister of Health
[43]The Minister relies on the Federal Court of Appeal
decision in Apotex Inc. v. Canada (Minister of
National Health and Welfare) (2000), 181 D.L.R.
(4th) 404 to state that the judicial review application
should be dismissed, because it does not constitute the
appropriate forum for remedy.
[44]The Minister has complete discretion to add patent
lists to or delete them from the Register. The PM(NOC)
Regulations provide a complete regime to deal with a patent
that may be ineligible for listing.
[45]Notwithstanding the fact that the Crown respondent
argues the application should be dismissed, the Minister
seems to support the idea that "where a patent is limited in
scope to a particular indication, the patent is eligible for
inclusion on the Register only if that indication is the
subject of a Notice of Compliance".
[46]The only argument concerns the forum. According to the
Minister, the PM(NOC) Regulations provide complete relief. If
proceedings are instituted under subsection 6(1) [as am. by
SOR/98-166, s. 5], the generic manufacturer may apply to the
Court under paragraph 6(5)(a) [as am. idem] to
dismiss the subsection 6(1) application because based on a
patent that is ineligible for the Register. Paragraph
6(10)(b) [as am. idem] further provides a
remedy as to costs in the case of the inclusion on the
certified patent list of a patent that under section 4. The
standard of review of the Minister's decision is not
correctness. The eligibility decision would be reviewable on
a standard of correctness; however the Minister's decision
not to add, or to delete, an ineligible patent is subject
only to review on a deferential standard.
[47]The Crown respondent submits that the proper forum has
already been constituted for Genpharm under T-122-02.
Moreover, for the Court to refer the matter back to the
Minister for reconsideration in light of the statement from
TPD that it was prepared to reconsider its decision would be
tantamount to issuing a mandamus or a declaration to which
Genpharm is not entitled, because of the Apotex
decision, supra.
ANALYSIS
(1) Can a patent with a
claim for the use of a medicine be listed in the Patent
Register if that use has not been approved by the
Notice of Compliance? |
Relevant Legislation
Patented Medicines (Notice of Compliance)
Regulations, SOR/93-133
Interpretation
2. In these Regulations,
"claim for the medicine itself" includes a claim in
the patent for the medicine itself when prepared or
produced by the methods or processes of manufacture
particularly described and claimed or by their obvious
chemical equivalents; |
"claim for the use of the medicine" means a claim
for the use of the medicine for the diagnosis,
treatment, mitigation or prevention of a disease,
disorder or abnormal physical state, or the symptoms
thereof; |
"court" means the Federal Court of Canada or any
other superior court of competent jurisdiction; |
"expire" means, in relation to a patent, expire,
lapse or terminate by operation of law; |
"first person" means the person referred to in
subsection 4(1); |
"medicine" means a substance intended or capable of
being used for the diagnosis, treatment, mitigation or
prevention of a disease, disorder or abnormal physical
state, or the symptoms thereof; |
"Minister" means the Minister of National Health
and Welfare; |
"notice of compliance" means a notice issued under
section C.08.004 of the Food and Drug
Regulations; |
"patent list" means a list of all patents that is
submitted pursuant to section 4; |
"register" means the register maintained by the
Minister under section 3. |
"second person" means the person referred to in
subsection 5(1) or (1.1), as the case may be. |
Register
3. (1) The Minister shall maintain a register of
any information submitted under section 4. To maintain it,
the Minister may refuse to add or may delete any information
that does not meet the requirements of that section.
(2) The register shall be open to public inspection during
business hours.
(3) No information submitted pursuant to section 4 shall
be included on the register until after the issuance of the
notice of compliance in respect of which the information was
submitted.
(4) For the purpose of deciding whether information
submitted under section 4 should be added to or deleted from
the register, the Minister may consult with officers or
employees of the Patent Office.
Patent list
4. (1) A person who files or has filed a submission
for, or has been issued, a notice of compliance in respect of
a drug that contains a medicine may submit to the Minister a
patent list certified in accordance with subsection (7) in
respect of the drug.
(2) A patent list submitted in respect of a drug must
(a) indicate the
dosage form, strength and route of administration of
the drug; |
(b) set out any
Canadian patent that is owned by the person, or in
respect of which the person has an exclusive licence or
has obtained the consent of the owner of the patent for
the inclusion of the patent on the patent list, that
contains a claim for the medicine itself or a claim for
the use of the medicine and that the person wishes to
have included on the register; |
(c) contain a
statement that, in respect of each patent, the person
applying for a notice of compliance is the owner, has
an exclusive licence or has obtained the consent of the
owner of the patent for the inclusion of the patent on
the patent list; |
(d) set out the date
on which the term limited for the duration of each
patent will expire pursuant to section 44 or 45 of the
Patent Act; and |
(e) set out the
address in Canada for service on the person of any
notice of an allegation referred to in paragraph
5(3)(b) or (c), or the name and address
in Canada of another person on whom service may be
made, with the same effect as if service had been made
on the person. |
(3) Subject to subsection (4), a person who submits a
patent list must do so at the time the person files a
submission for a notice of compliance.
(4) A first person may, after the date of filing of a
submission for a notice of compliance and within 30 days
after the issuance of a patent that was issued on the basis
of an application that has a filing date that precedes the
date of filing of the submission, submit a patent list, or an
amendment to an existing patent list, that includes the
information referred to in subsection (2).
(5) When a first person submits a patent list or an
amendment to an existing patent list in accordance with
subsection (4), the first person must identify the submission
to which the patent list or the amendment relates, including
the date on which the submission was filed.
(6) A person who submits a patent list must keep the list
up to date but may not add a patent to an existing patent
list except in accordance with subsection (4).
(7) A person who submits a patent list or an amendment to
an existing patent list under subsection (1) or (4) must
certify that
(a) the information
submitted is accurate; and |
(b) the patents set
out on the patent list or in the amendment are eligible
for inclusion on the register and are relevant to the
dosage form, strength and route of administration of
the drug in respect of which the submission for a
notice of compliance has been filed. |
Construction of the PM(NOC) Regulations
[48]The proper construction of the PM(NOC) Regulations
would seem to require that they be read as a whole. In
particular, neither counsel has addressed the significance of
subsection 3(3). Yet it is essential to the understanding of
the link between the Register and the NOC.
[49]In French, subsection 3(3) reads:
3. . .
(3) Aucun renseignement soumis aux termes de l'article
4 n'est consigné au registre avant la
délivrance de l'avis de conformité à
l'égard duquel il a été soumis.
[50]It would appear difficult to reconcile that text with
Lundbeck's argument that there is no necessary link between
the uses claimed and the uses approved. The French
"renseignement" i s even more specific than the
English "information". It is not a matter of the drug
obtaining the NOC, and then any information regarding that
drug (including unapproved claims) being entered on the
Register, as Lundbeck seems to argue. It would seem possi ble
to argue that the information in the Register must correspond
to the information supplied for the NOC, which would include
the use.
[51]The interpretation from the TPD and from the Minister
would seem to confirm that construction. It seems that for
CIPO too, it is important to find a link between a claim and
the approved use (to the point of finding depression where
none is claimed by the patent).
[52]Lundbeck argues that the only requirement relates to
dosage form, strength and route of administration (paragraph
4(2)(a) and subsection 4(7)) However this fails to
take into account the reading of the PM(NOC) Regulations as a
whole, one of the cardinal rules of statutory
interpretation.
[53]Subsection 3(3) states that the information submitted
pursuant to section 4 may only be included after issuance of
the NOC in respect of which the information was
submitted. Subsection 4(1) provides that once the NOC has
been issued, or at least applied for, a patent list may be
submitted to the Minister; this patent list must be certified
in accordance with subsection 4(7). Paragraph 4(2)(b)
states that the patent list must set out any Canadian patent
that includes a claim for the medicine or a claim for the use
of the medicine that the person wishes to have included on
the Register. Finally, paragraph 4(7)(b) provides that
the person submitting the patent list must certify that the
patents are eligible for inclusion and are relevant to
the dosage form, strength and route of administration. In
other words, this last requirement is not the only one, and
eligibility is more than dosage form, strength and route of
administration. The fact that the latter requirement is
repeated twice does not negate the importance of the NOC,
which under subsection 3(3) is the prerequisite for
the inclusion on the Register.
[54]In the Guidance for Industry document which it
publishes, the TPD explains thus the link between the NOC and
the patent list:
3.2.1 Patent Lists With
Submissions:
At the time of filing of a submission for a Notice of
Compliance (NOC), the first person may submit a list of
granted patents which, in the belief of the first person,
contain a claim for the medicine itself or a claim for the
use of the medicine and which should embody the drug in
respect of which the submission for NOC has been filed.
[55]And to further explain patent eligibility for the
Register, the document states at pages 5-6:
3.2.3 Patent Eligibility:
The Regulations and related jurisprudence determine
the factors which are to be considered in adding (or
removing) patents to the Patent Register.
A patent will be eligible where it is relevant to the drug
as described by the dosage form, strength, and route of
administration. In general, the factors for determining the
eligibility of a patent are:
the patent must contain a claim for the medicine itself or
a claim for the use of the medicine. For purposes of this
determination "the medicine" is as described in the
related drug submission for which a Notice of Compliance is
issued; [Emphasis added.]
Caselaw
[56]This is the first case to my knowledge where the issue
concerns a claim to the use of the medicine. However, the
issue of the link between the NOC and the patent list, which
is at the core of this case, has been brought up in regards
to the claim to the medicine itself, in two key decisions,
Warner-Lambert Canada Inc. v. Canada (Minister of
Health) (2001), 12 C.P.R. (4th) 129 (F.C.T.D.); and
Eli Lilly Canada Inc. v. Canada (Minister of Health),
[2003] 3 F.C. 140 (C.A.). Given the similarity of the wording
in paragraph 4(2)(b)--a claim for the medicine itself
or a claim for the use of the medicine--I believe that these
decisions apply to the present case and that I am bound by
the decision of the Federal Court of Appeal.
[57]In Warner-Lambert, the Minister had decided not
to add patent lists related to two patents, and to remove the
patent lists already on the Register for those same two
patents because the patented composition of the drug had not
been issued a NOC; rather an NOC had been issued for a drug
containing the same medicine as the one contained in the drug
for which the patent was listed. The drug in respect of which
the NOC had issued contained the medicinal ingredient
quinapril hydrochloride. The first patent was directed to a
pharmaceutical composition containing that medicine and an
ascorbic acid containing stabilizer; the second patent was
directed to a composition containing the medicine and an
ascorbic acid and/or sodium ascorbate. The two drugs for
which the NOC had issued contained neither an ascorbic acid
containing stabilizer nor an ascorbic acid and/or sodium
ascorbate. Pinard J. came to the conclusion that because the
drugs which had received approval through the NOC were not
produced according to the patents, there was no reason to
include the patents on the Register, and the Minister had
been justified in his decision not to add the new patent
lists and to remove those already there [at paragraphs
17-19]:
To me, the language of subsections 4(1), (2) and (7) of
the Regulations is clear: for a patent set out on a patent
list to be eligible for inclusion on the register, it must be
relevant to a drug for which a submission for a notice of
compliance has been filed. This requirement obviously
contributes to ensuring a "product-specific" patent list,
which is an objective clearly stated in the Regulatory Impact
Analysis Statement accompanying the amendments to section 4
of the Regulations in 1998:
Patentees are required to
certify that the patents submitted on the list for a
drug are relevant to that particular version of the
drug. This will ensure that patents that do not apply
to the particular version of the drug will not impede
the generic's market entry. |
In the case at bar, the evidence shows that the 023 and
024 patents contain claims for pharmaceutical compositions
which are considered, within the meaning of the Regulations,
drugs that contain claims for a medicine (see Hoffman-La
Roche Ltd. v. Canada (Minister of National Health and
Welfare) (1995), 62 C.P.R. (3d) 58 (F.C.T.D.); aff'd
(1995), 67 C.P.R. (3d) 25 (F.C.A.); application for leave to
appeal to Supreme Court of Canada denied [1996] S.C.C.A. No.
65 (S.C.C.) (QL)).
However, the evidence also shows that the specific drugs
covered by the 023 and 024 patents have never been the
subject of a drug submission (NOC) under the Food and Drug
Regulations, C.R.C., c. 870, as amended. Further, the
evidence shows that the ACCUPRIL and ACCURETIC drug products
for which drug submissions have been filed and approved by
the Minister do not contain an ascorbic acid containing
stabilizer, ascorbic acid or sodium ascorbate, which are the
stabilizers found in the pharmaceutical compositions covered
by the 023 and 024 patents. As such, the later patents are
not relevant to the drug products for which a submission for
a notice of compliance has been filed. As a result, they
do not meet the eligibility requirements contained in
subsections 4(1), (2) and (7) of the Regulations.
Consequently, it was correct for the Minister to conclude
that the `023 and `024 patents were ineligible for inclusion
on the register. [Emphasis added.]
[58]In the Eli Lilly case, supra, however,
Sharlow J.A., writing for the majority, ruled that there was
no necessary link between the NOC and the patent list, beyond
the requirements of section 4. Specifically, the "relevance"
argument to which the Minister had referred and which had
been the deciding factor in the Warner-Lambert ,
supra, decision had been given too broad an
interpretation by Justice Pinard. The facts in Eli
Lilly, according to Justice Sharlow, were "not
distinguishable" from the facts in Warner-Lambert . At
paragraph 32, she writes:
A review of the 1998 Regulatory Impact Analysis Statement
as a whole indicates that the passage cited in Warner
Lambert [above] refers specifically to paragraph
4(7)(b) of the PM(NOC) Regulations. From that I infer
that the "relevance" mentioned in the quoted passage from the
1998 Regulatory Impact Analysis Statement relates to the new
requirement for a certification of relevance as to dosage
form, strength and route of administration. If that is so,
then the desired "product specific patent list" will be
achieved by ensuring compliance with paragraph
4(7)(b). I am not persuaded that the quoted passage
has the broader significance for which the Minister has
argued.
[59]And again, at paragraph 34, after quoting subsections
4(1) and (7) of the PM(NOC) Regulations:
I am unable to read those words as the Minister argues
they should be read. Subsection 4(1) addresses the question
of who may submit a patent list, not the permitted contents
of the patent list. Similarly, the emphasized words in
subsection 4(7)(b) do not describe any relationship
between the drug named in the notice of compliance and the
patents that may be included on the patent list. Rather, "the
drug in respect of which the submission for a notice of
compliance has been filed" is, simply, Tazidime.
[60]Claim construction principles are of little assistance
here, since the issue raised by Genpharm is whether a patent
with claims to unapproved uses can be listed. There is no
dispute as to the fact that (a) Lundbeck has been issued a
NOC for Celexa for the "symptomatic relief of depressive
illness", (b) the approved use is an old use which cannot be
protected by patent, and (c) no NOC has issued for the
patented uses of Celexa.
[61]The patent list has not been removed at Genpharm's
request, not because, according to the evidence, there is no
need to link the NOC and the patent list, but because,
precisely, there exists a link, according to the CIPO: one of
the claims for the use of the medicine includes the appr oved
use of Celexa, i.e. depression.
[62]Mr. Freed's opinion in Lundbeck's hands is a
double-edged sword--either the use is approved, and not
patentable because it is an old use, or it is patentable
because it is a new use, in which case it i s not approved;
no NOC would issue for this use to a generic manufacturer,
and infringement is unlikely. Lundbeck argues that the
depression covered by the new use is somehow different from
the depression covered by the NOC, which could give rise to
an infringement. This becomes a question of fact, related to
the prohibition order, and is dealt with in the T-122-02
proceedings.
[63]One can imagine that there could be a new use
protected by an NOC, in which case Genpharm would be properly
prohibited from infringing. In that case, there would be a
correspondence between the NOC and the patent list, which is
the basis of Genpharm's argument here that the 368 patent is
not properly listed, because there is no such correspondence.
The fact is that the infringement issue can be approached in
two ways. Either the patent is delisted so that there is no
need for the generic manufacturer to allege non-infringement
under section 5 [as am. by SOR/98-166, s. 4; 99-379, s. 2] of
the PM(NOC) Regulations, or non-infringement is alleged in
regards to the claims in the patent list. I have come to the
conclusion, for the reasons below, that the proper forum is
the allegation of non-infringement. First, the direction
given by the Federal Court of Appeal makes the delisting
problematic. Second, as argued by the Crown respondent and
supported by the Apotex decision, supra, the
PM(NOC) Regulations offer a full and complete remedy to the
problem.
[64]Many arguments have been put forth by the applicant as
to why a patent list unrelated to the NOC should not be
eligible for the Register. I find these arguments rather
compelling. As well, judging from the guidance document and
the Regulatory Impact Analysis Statement, as well as the
position which the Crown respondent has taken in this case
and the position of the Minister in Warner-Lambert,
supra, and Eli Lilly, supra, it appears
that the applicant's position is based on more than simply
its own interpretation of the PM(NOC) Re gulations.
[65]However, the Federal Court of Appeal in Eli
Lilly has clearly stated that the issue of relevance is
to be defined strictly in terms of the explicit requirements
of the PM(NOC) Regulations [at paragraphs 19, 21 and 22]:
The Minister, in exercising the authority under subsection
3(1), must consider whether the patent list meets the
requirements of subsections 3(3), 4(1), 4(2) and 4(7) of the
PM(NOC) Regulations.
. . .
Subsection 3(3) is intended to ensure that the Minister
does not give effect to a patent list submitted in relation
to a particular drug product until a notice of compliance has
been issued for that product. . . .
Subsection 4(1) tells the Minister who is entitled to file
a patent list. That entitlement is given to a person who
files or has filed a new drug submission to obtain a notice
of compliance in respect of a "drug that contains a
medicine", or a person who has been issued a notice of
compliance in respect of a "drug that contains a
medicine".
[66]The decision applies the requirements of subsections
3(3), 4(1), 4(2) and 4(7) of the PM(NOC) Regulations and
concludes that they have been met. The respondent argues that
the same applies here, and on a strict interpretation of the
provisions, reading them in isolation, I would tend to agree
with the respondent.
[67]A NOC was issued for the drug Celexa (subsection
3(3)).
[68]The respondent is a person who has been issued a NOC
in respect of a drug (Celexa) that contains a medicine
(citalopram), and may therefore submit a patent list
certified in accordance with subsection 4(7) in respect of
the drug (subsection 4(1)).
[69]The patent list submitted in respect of the drug
indicates the dosage form, strength and route of
administration of the drug; the patent contains a claim for
the use of the medicine (subsection 4(2)).
[70]The person who has submitted the patent list has
certified that the information submitted is accurate, that
the patents are eligible for inclusion and are relevant to
the dosage form, strength and route of administration of the
drug in respect of which the submission for a NOC has been
filed (subsection 4(7)).
[71]In Eli Lilly, supra, the majority
concludes thus as to the inclusion of the patent on the
Register [at paragraph 29]:
Based on the foregoing ordinary and grammatical reading of
the PM(NOC) Regulations, the 969 patent should be eligible
for inclusion on the patent lists for Tazidime. That is the
interpretation that should be adopted unless the words of the
PM(NOC) Regulations can reasonably bear a different meaning
that would accord better with the purpose of the PM(NOC)
Regulations.
[72]This strict interpretation, states the majority
ruling, is in accordance with the intent of the PM(NOC)
Regulations, which is the protection of patent.
[73]In a strongly-worded dissent, Isaac J.A. concludes (at
paragraph 51) "contrary to what my colleague has asserted,
. . . the requirements of subsection 3(3) have not
been met".
[74]Isaac J.A. disagrees with Sharlow J.A. (at paragraph
52) "that because the appellant has been issued a notice of
compliance in respect of Tazidime, that contains a
ceftazidime, it is permitted to submit a patent list in
respect of the drug Tazidime". The "medicine itself",
according to Isaac J.A., cannot be ceftazidime, which alone
would not correspond to the definition of "medicine"
(ceftazidime on its own is toxic). The claim to the medicine
itself, protected by the patent list, must be for the
patented formula , itself a medicine under the definition.
The problem is that no NOC has issued for the patented
version, and therefore the drug covered by the NOC is not the
same as the drug covered by the patent list, so that the
condition set by subsection 3(3) is not fulfilled.
[75]In addition, Isaac J.A disagrees with Sharlow J.A.
when she states that the Regulatory Impact Analysis Statement
[at paragraph 33] "can do no more than explain in very
general terms the objective of the Regulations to which they
relate" and cites three decisions where the Regulatory Impact
Analysis Statement was used to interpret the accompanying
PM(NOC) Regulations (RJR--MacDonald Inc. v.
Canada (Attorney General), [1994] 1 S.C.R. 311, at page
353; Friesen v. Canada, [1995] 3 S.C.R. 103, at page
139; Bayer Inc. v. Canada (Attorney General) (1999),
87 C.P.R. (3d) 293 (F.C.A.), at page 296). In her reasons,
Sharlow J.A. dismissed the Regulatory Impact Analysis
Statement, and interpreted the PM(NOC) Regulations only as a
means to protect patentees' ri ghts. Isaac J.A. writes (at
paragraph 73):
In accepting, in paragraphs 34 and 35 of her reasons, that
the sole purpose of the PM(NOC) Regulations is to prevent
patent infringement, my colleague gives no weight to the
following statement, contained in the 1998 Regulatory Impact
Analysis Statement . . . that accompanied the amended PM(NOC)
Regulations, which demonstrates its dual purpose:
The link between the patent status of a drug and approval
for a generic version of the drug is being maintained, to
provide effective enforcement of patent rights, while at the
same time ensuring that generic drugs can enter the market as
soon as possible; either as soon as it is determined that
they are not covered by a patent, or, where they are covered
by a patent, immediately after the expiry of the
patent. . . .
The amendments reinforce the balance between providing a
mechanism for the effective enforcement of patent rights and
ensuring that generic drug products enter the market as soon
as possible.
[76]The Federal Court of Appeal has not yet rendered a
decision on the exact issue in this case, whether "a clai m
to the use of the medicine" referred to in paragraph
4(2)(b ) of the PM(NOC) Regulations must be related to
the uses approved by Health Canada in the NOC procedure.
Logic would seem to dictate that such should be the case; the
Eli Lilly decision supra, appears to indicate
the opposite approach.
[77]For now, I believe that I am bound by the Eli
Lilly decision, and that I must rule that the necessary
requirements for inclusion on the Register are fulfilled and
allow Lundbeck to list the 368 patent for the product Celexa.
No doubt clearer language in the PM(NOC) Regulations would go
a long way to dispel the fog we find ourselves in, and
prevent the abundant litigation which is sure to continue as
long as the ambiguity remains.
(2) The appropriate remedy
[78]Even if in this case it has been decided that the
patent is eligible to be listed, the issue of what would
constitute the proper relief had the decision gone otherwise
must be put to rest. In particular, can the Court order the
Minister to add a patent list to or delete it from the
Register? Is declaratory relief available as a remedy in such
an instance? In the alternative, can the Court enjoin the
Minister to make a decision, based on proper procedures,
following the TPD's undertaking to review the decision not to
remove the patent list from the Register? Here we find clear
guidance in a decision of the Federal Court of Appeal,
Apotex Inc. v. Canada (Minister of National Health and
Welfare) (2000), 181 D.L.R. (4th) 404.
(i) Can the Court order
the Minister to add a patent list or delete it from the
Register? |
[79]In Apotex, the appellants argued that since
process claims were not eligible for inclusion on the
Register, as decided in Deprenyl Research Ltd. v. Apotex
Inc. (1995), 60 C.P.R. (3d) 501 (F.C.A.), the Minister
was under a duty to refuse to add or to delete such patents
from the Register. The Court answered the argument thus, at
paragraphs 11 and 12:
The Minister is under a mandatory duty under subsection
3(1) to maintain the Register. However, by reason of the term
"may refuse to add or may delete" in subsection 3(1), the
Minister's authority to refuse to add or to delete a patent
is discretionary. It is clear that the Governor in Council
did not impose a mandatory duty on the Minister under
subsection 3(1) to refuse to add or to delete patents. The
Minister says this was because of the prima facie
obligation placed on him under subsection 3(1) to maintain a
Register of information submitted under subsection 4(1), i.e.
a patent list submitted under subsection 4(1). Whether or not
a patent was eligible for inclusion on the Register could, in
some cases, be difficult to determine and the Minister was
thought by the Governor in Council to require flexibility in
dealing with when and whether he should refuse to add or to
delete such patents. Without addressing, at this point, the
validity of the Minister's argument, it is clear that the
Minister's authority to refuse to add or to delete patents
from the Register under subsection 3(1) is discretionary.
There being no mandatory duty on the Minister to refuse to
add or to delete patents from the Register under subsection
3(1), there is no basis for the mandamus, injunctive
or declaratory relief as sought by the appellants.
[80]In Apotex Inc. v. Canada (Minister of National
Health and Welfare) (1998), 82 C.P.R. (3d) 68 (F.C.T.D.),
Gibson J. reviewed the conditions under which relief in the
nature of mandamus is available. The fifth condition
relates to the fact that there is no other remedy. Gibson J.
wrote the following in a passage that applies equally well to
the case at bar (at paragraph 34):
I note the fifth condition cited above, that no other
adequate remedy is available to the applicant. The applicants
herein are concerned about the potential delay in their
market entry in respect of generic versions of drugs by
otherwise unnecessary prohibition proceedings in respect of
patents on the Register, but not eligible for inclusion on,
the Register. In my view, this is a valid and justiciable
concern which is more properly raised in prohibition
proceedings themselves and in relation to which provisions
for summary dismissals and costs awards with regard to
patents improperly included on the Register have recently
been added to the Regulations. The applicants therefore have
alternative remedies that I conclude are "adequate".
(ii) Can the Court
enjoin the Minister to decide on proper
principles? |
[81]The applicant in the present case cites two cases,
Baker v. Canada (Minister of Citizenship and
Immigration), [1999] 2 S.C.R. 817; and Conille
v. Canada (Minister of Citizenship and Immigration),
[1999] 2 F.C. 33 (T.D.), to argue that the Minister has a
duty to act and cannot delegate that responsibility. In this
instance, the TPD wrote a letter to the applicant to state
that it would reconsider the decision of not deleting patent
368 once the opinion of CIPO was received. The applicant
argues that the failure to act on this promise is a denial of
procedural fairness.
[82]In the Apotex decision [F.C.A.], there was a
question as to (at paragraph 13) "whether the Minister was
unlawfully exercising or declining to exercise his discretion
to refuse to add or to delete patents from the Register.
Arguably, mandamus , injunctive or even declaratory
relief might be available in such circumstances."
[83]Although in this case there is the additional factor
of the "undertaking", I do not believe that such an
undertaking by the TPD alters the legal duty of the Minister
by transforming his discretionary power into a duty to act.
As stated in Baker, supra, although
discretionary decisions must be made within the bounds of
jurisdiction conferred by statute, the courts must afford
considerable deference to discretionary decision-makers. The
Minister "may consult with officers or employees of the
Patent Office"; he is under no obligation to do so. The fact
that the TPD states that the decision will be reviewed once
CIPO has given its advice does not force the Min ister to act
in any haste, especially since in these proceedings, contrary
to what was the case in the decisions cited by the applicant,
Baker and Conille, other remedies are
available.
[84]I believe that even if patent 368 was ineligible for
the Patent Register, the "alternative remedies" Gibson J.
refers to in Apotex [F.C.T.D.] would be sufficient to
resolve the case at bar.
(iii) Remedies offered
by the PM(NOC) Regulations |
[85]In the Apotex (F.C.A.) decision,
supra, the Court stated that there exists relief in
the case where a generic manufacturer is prejudiced by the
inclusion of ineligible patents on the Register.
Specifically, with the amendments enacted in 1998, paragraph
6(5)(a) allows the Court to dismiss the application
where it is satisfied that the patents at issue are not
eligible for inclusion on the Register. Moreover, subsection
6(10) provides that one of the factors which the Court may
take into account in making an order as to costs is, at
paragraph 6(10)(b) "the inclusion on the certified
patent list of a patent that should not have been included
under section 4". Commenting the first of those two
provisions the Court stated at paragraphs 23 and 24:
It is apparent that in enacting paragraph 6(5)(a)
of the Regulations, the Governor in Council was aware of, and
allowed for, the possibility that ineligible patents may find
their way onto the Register and may not be readily capable of
being deleted under subsection 3(1). Paragraph 6(5)(a)
provides generic drug manufacturers with the opportunity, if
and when prohibition proceedings are commenced by a patent
holder in respect of a Notice of Allegation served by the
generic, to apply to the Court to dismiss the prohibition
application because it is based on an ineligible patent
included on the Register.
. . . the remedy provided by paragraph 6(5)(a)
does directly address the problem of a generic manufacturer
having to compare its product with the drug of a patent
holder whose drug is based on an ineligible patent. It
provides a judicial forum in which the eligibility of the
specific patent or patents at issue can be decided by the
Court after hearing from the patent holder and the generic
competitor.
[86]In regards to the second provision, at paragraph 25,
the Court found:
Again, it is apparent that the Regulations contemplate
that ineligible patents may be included on the Register and a
remedy in costs is provided when unnecessary proceedings have
taken place on the basis of an ineligible patent.
[87]Finally, section 8 [as am. by SOR/98-166, s. 1]
provides for the possibility of the Court awarding damages or
profits for losses incurred because of a subsection 6(1)
application. This completes the scheme which according to the
Court of Appeal is sufficient to remedy the harm which could
occur if an ineligible patent is listed, or if the
application to prohibit the issuance of the NOC is
unwarranted [F.C.A. Apotex decision, at paragraphs
27-28]:
Paragraph 8(1)(a) specifically provides that a
patent holder whose prohibition application is dismissed is
liable for the loss suffered by a generic manufacturer for
the delay incurred in the issuance of a Notice of Compliance
to the generic by reason of the prohibition application.
Under subsection 8(4), the Court has been given jurisdiction
to make an award of damages or lost profits. Section 8 of the
Regulations makes it apparent that the Governor in Council
recognized that generic manufacturers could be subject to
unjustified prohibition applications, including applications
based upon ineligible patents on the Register and provided a
remedy in the form of an award of damages or lost profits in
such circumstances.
In sum, there is a comprehensive scheme provided in the
Regulations which specifically addresses ineligible patents
on the Register and the costs, loss and damage suffered by
generic manufacturers arising from such ineligible patents
being included on the Register. Having regard to the scheme
and its recognition that ineligible patents may be included
on the Register, it follows that there is no unlawful refusal
to exercise discretion by the Minister in not deleting such
patents from the Register under subsection 3(1).
[88]In the instant case, the issue of remedies for
ineligibility of the patent is moot, since it appears that
the patent is eligible. However, for the reasons given in
proceedings T-122-02, although the patent is eligible for the
list, it cannot protect against the use for which the NOC has
been applied for by Genpharm.
[89]The application should be dismissed.