William Vanveen

The appellant, a US-based distributor of the patented medicine Thalomid, sold the drug to Canadians through the Special Access Programme.

The Patented Medicine Prices Review Board requested pricing information, asserting jurisdiction under the Patent Act over medicines 'sold in any market in Canada'.

The appellant argued that under commercial law principles, the sales occurred in the United States.

The Supreme Court of Canada upheld the Board's decision, finding that a purposive interpretation of the Patent Act supported the Board's consumer protection mandate to regulate prices of medicines delivered and dispensed in Canada, regardless of the commercial locus of the sale.

The appellant challenged an order striking its amended statement of claim alleging that brand-name pharmaceutical manufacturers and a related generic seller marketed pseudo-generic drugs through misleading origin representations and anti-competitive pricing practices.

The Court of Appeal held that the pleading could support a claim under s. 52 of the Competition Act, as well as related tort claims for unlawful interference with economic relations and conspiracy, because the alleged false statement of origin could have been made to promote a business interest and in a material respect.

The court agreed, however, that the double ticketing claim under s. 54 of the Competition Act and the Business Practices Act allegations were not viable on the pleaded facts.

The court also held that it was not plain and obvious that the Food and Drugs Act claim against the generic seller must fail.

The appeal was allowed in part with costs to the appellant.