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.