Judgments

Decision Information

Decision Content

T-449-87
Glaxo Canada Inc. (Plaintiff) v.
Minister of National Health and Welfare, Attor ney General of Canada and Apotex Inc. (Defen-
dants)
and
Novopharm Limited (Intervenor)
INDEXED AS: GLAXO CANADA INC. V. CANADA (MINISTER OF NATIONAL HEALTH AND WELFARE)
Trial Division, Rouleau J.—Toronto, May 27, 28, 29, June 3 and 4; Ottawa, September 22, 1987.
Food and drugs — Defendant filing new drug submission — Notice of compliance issued — Plaintiff competitor, seeking interlocutory injunction — Alleging its confidential data improperly used, breach of fiduciary relationship, inconsistent and unequal application of Regulations, failure to verify safety of defendant's drug — Application denied — Plaintiff without standing — Only purpose of application to prevent competition — No right to interfere with official action affect ing competitor — Validity of legislation, Regulations not challenged — Allegations unsupported by evidence.
Practice — Parties — Standing — Plaintiff seeking inter locutory injunction restraining sale of competitor's drug — Attorney General proper plaintiff where harm to public gener ally — Plaintiffs legal rights not prejudicially affected by Minister's granting competitor notice of compliance — Stand ing for public interest recognized if justiciable issues raised and plaintiff demonstrating special interest, prejudice — No justiciable issue — Application dismissed.
Judicial review — Equitable remedies — Injunctions — Drug manufacturer seeking to restrain Minister from granting competitors notices of compliance — Alleging breach of fiduciary relationship in improperly using confidential data, inconsistent and unequal application of Regulations and fail ure to verify safety of competitor's drug — No standing to seek injunction in public law area where private right not affected and no special damages — Considering nature of Minister's statutory responsibilities, no judicial review of dis cretion unless acting arbitrarily or illegally — Plaintiff
demonstrating neither strong prima facie case nor irreparable harm — Interlocutory injunction denied.
The plaintiff, Glaxo, sells a drug, developed from Ranitidine, under the trade name "Zantac". Several manufacturers had secured compulsory licences for Ranitidine. The defendant, Apotex, filed a new drug submission for Ranitidine and a notice of compliance was issued. Glaxo seeks an interlocutory injunc tion restraining the Minister of National Health and Welfare from: (1) granting a notice of compliance to Ranitidine manu facturers; (2) utilizing plaintiffs confidential information; (3) permitting Apotex to sell Apo-Ranitidine and restraining Apotex from selling this drug.
The plaintiffs case is that a substantial portion of the data in the defendant's new drug submission was plaintiffs confidential information not available to Apotex. The Minister is said to have breached a fiduciary relationship with Glaxo, applied the Regulations inconsistently and unequally and breached his duty to verify the safety profile of Apo-Ranitidine. As a result, the plaintiff would lose its proprietary rights over its data and competitiveness in the market place.
Held, the application should be dismissed.
The plaintiff does not have standing to bring this action. A person has standing to protect his own interest; the Attorney General is the appropriate plaintiff where harm is suffered by the public generally. A private individual may seek an injunc tion in the area of public law only if a private right is also interfered with or if he has suffered special damages resulting from interference with a public right.
Glaxo's only purpose in bringing this application was to prevent competition. The plaintiffs legal rights had not been prejudically affected by the Minister's decision to grant Apotex a notice of compliance. Glaxo had no right to interfere with official action affecting a competitor merely to prevent that competitor from obtaining some advantage.
Although the Court has a discretion to recognize standing on the basis of the public interest, the action must raise justiciable issues in which the plaintiff has a genuine interest. In seeking public interest standing to challenge administrative action, a party must demonstrate a special interest and prejudice. The plaintiffs concern for public health and safety is one shared with the general public. Its only interest is economic. There was no justiciable issue. The validity of the legislation or Regula tions was not challenged. Rather, the plaintiff desires judicial review of a regulatory decision with which it disagrees. Consid ering the nature of the responsibilities under the legislation, it was clear that the Court might not interfere with the exercise
of the Minister's discretion so long as it was not exercised arbitrarily or illegally.
Glaxo's allegations, that the Minister had wrongfully utilized its data and failed to satisfy himself as to the safety of the defendant's drug, were based on speculation. There was no evidence of unauthorized use of information or of discrimina tion by requiring more information from plaintiff than from the defendant.
There were additional reasons for denying an interlocutory injunction. The plaintiff had not made out a strong prima facie case nor had it shown irreparable harm in that any damages would be calculable by reference to sales of the defendant's drug.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10. Food and Drugs Act, R.S.C. 1970, c. F-27.
Patent Act, R.S.C. 1970, c. P-4, s. 41 (as am. by R.S.C. 1970 (2nd Supp.), c. 10, s. 64).
CASES JUDICIALLY CONSIDERED
APPLIED:
Rothmans of Pall Mall Canada Limited v. Minister of National Revenue (No. 1), [1976] 2 F.C. 500 (C.A.); Finlay v. Canada (Minister of Finance), [1986] 2 S.C.R. 607; (1986), 71 N.R. 338; Boulis v. Minister of Man power and Immigration, [1974] S.C.R. 875.
CONSIDERED:
Rosenberg et al. v. Grand River Conservation Authority et al. (1976), 12 O.R. (2d) 496 (C.A.); Re Pim and Minister of the Environment et al. (1978), 23 O.R. (2d) 45 (H.C.J.); Attorney-General for Ontario v. Grabar- chuk et al. (1976), 67 D.L.R. (3d) 31 (Ont. H.C.J.); Thorson v. Attorney General of Canada et al., [1975] 1 S.C.R. 138; Nova Scotia Board of Censors v. McNeil, [1976] 2 S.C.R. 265; Minister of Justice of Canada et al. v. Borowski, [1981] 2 S.C.R. 575; American Cyanamid Co. v. Ethicon Ltd., [1975] A.C. 396; [1975] 1 All ER 504 (H.L.); Pfizer Canada Inc. v. Minister of Health & Welfare et al. (1986), 12 C.P.R. (3d) 438 (F.C.A); Apotex Inc. v. Canada (Attorney General), [1986] 2 F.C. 233; 9 C.P.R. (3d) 193 (T.D.).
REFERRED TO:
Astra Pharmaceuticals Canada Ltd. et al. v. Apotex Inc. (1984), 1 C.P.R. (3d) 513 (F.C.T.D.); Pfizer Canada
Inc. v. Attorney-General of Canada et al. (1986), 8 C.P.R (3d) 532 (F.C.T.D.); Apple Computer Inc. et al. v. Macintosh Computers Ltd. et al. (1985), 3 C.P.R. (3d) 34 (F.C.T.D.); Syntex Inc. v. Apotex Inc., [1984] 2 F.C. 1012; 1 C.P.R. (3d) 145 (C.A.); Wyeth Ltd. v. Novo- pharm Ltd. (1985), 7 C.P.R. (3d) 399 (F.C.T.D.).
COUNSEL:
John P. G. Bell and J. Martin Peters for plaintiff.
Marlene I. Thomas for defendants Minister of National Health and Welfare and Attorney General of Canada.
Harry B. Radomski for defendant Apotex Inc.
W. A. Kelly, Q.C., for intervenor Novopharm Ltd.
SOLICITORS:
Shibley, Righton & McCutcheon, Toronto, for plaintiff.
Deputy Attorney General of Canada for defendants Minister of National Health and Welfare and Attorney General of Canada.
Goodman & Goodman, Toronto, for defen dant Apotex Inc.
Fasken & Calvin, Toronto, for intervenor Novopharm Ltd.
The following are the reasons for order ren dered in English by
ROULEAU J.: This is a motion for interlocutory injunctive relief brought pursuant to the provisions of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, as amended, and of the Food and Drugs Act, R.S.C. 1970, c. F-27 and Regulations thereto as amended wherein the plaintiff seeks an interlocutory injunction:
a) restraining the defendant Minister from
i) granting a Notice of Compliance to manufacturers of the drug Ranitidine,
ii) utilizing in any manner confidential information and data of the plaintiff;
b) restraining the defendant Minister from continuing to permit the defendant Apotex Inc. to sell, advertise for sale or market in any manner its drug Apo-Ranitidine pursuant to its Notice of Compliance;
c) restraining the defendant Apotex Inc. from selling, adver tising for sale or marketing in any manner its drug Apo- Ranitidine pursuant to its Notice of Compliance.
This case centres around the process by which new drugs are approved for manufacture and sale in Canada. The Health Protection Branch is a branch of the Department of National Health and Welfare. One of the duties and obligations of the branch is to process new drug submissions made by pharmaceutical manufacturers for a notice of compliance pursuant to the Food and Drugs Act and its Regulations. The Minister of National Health and Welfare is responsible for the adminis tration of the Act and the Regulations and is vested with the duty to oversee the operation of the Health Protection Branch and the application of the Regulations governing new drug submissions.
Before selling a new drug in Canada, a phar maceutical company is required to obtain a notice of compliance from the Health Protection Branch. In order to obtain a notice of compliance a com pany is required to submit to the branch a new drug submission containing extensive material, including a product monograph, as set out in the Regulations. The central purpose of the Regula tions is to ensure that any new drug meets rigorous safety profile standards in order to protect the Canadian public. If, upon review, the Minister finds the new drug submission to be satisfactory, he is compelled to issue a notice of compliance pursuant to the Regulations.
The plaintiff Glaxo Canada Inc. is a subsidiary company of the multinational pharmaceutical company called Glaxo situated in the United King dom. Glaxo manufactures, sells and advertises for sale pharmaceutical products throughout Canada. One of the plaintiff's major pharmaceutical prod ucts is a drug developed from Ranitidine and which it has marketed and sold in Canada since 1982 by the trade name "Zantac". The drug is primarily used for the inhibition of secretion of gastric acid and pepsin in the human stomach and
is prescribed by doctors to provide relief from pain, to promote ulcer healing and to control certain conditions such as duodenal ulcers, benign gastric ulcers and to reduce ulcer recurrence.
In order to sell Zantac and advertise it for sale in Canada, the plaintiff submitted a new drug submission to the Health Protection Branch and a notice of compliance was issued by the Minister on November 26, 1981. On June 19, 1986 the Minis ter issued a second notice of compliance to the plaintiff for a supplement to its new drug submis sion for Zantac. The plaintiff's supplemental new drug submission involved a change to the plain tiffs product monograph for Zantac.
Section 41 of the Patent Act, R.S.C. 1970, c. P-4, as amended [by R.S.C. 1970 (2nd Supp.), c. 10, s. 64], sets out a procedure whereby a phar maceutical company can obtain a compulsory licence to produce and market a generically equivalent drug subject to the payment of a royal ty to the originator of the drug. Subsection 41(4) of the Act provides that the Commissioner of Patents shall, on application by any person for a licence, grant a licence in the case of a patent relating to medicine, or for the preparation or production of medicine except where he sees good reason not to grant such a licence.
Pursuant to these provisions of the Patent Act, Novopharm Ltd., Genpharm Inc., Medichem Inc., Frank W. Horner Inc. and Apotex Inc. have all obtained or applied for compulsory licences for Ranitidine. The defendant Apotex Inc. filed with the Minister a new drug submission for the sale and advertising of Ranitidine and a notice of com pliance was issued to Apotex on February 23, 1987.
It its statement of claim the plaintiff maintains that the data provided by the plaintiff in its new drug submissions submitted to the Minister was provided on the basis that it would only be used for the purpose of evaluating the plaintiff's new drug
submission and that it would not be used for any other purpose without the plaintiffs permission. Accordingly, the plaintiff maintains that a special trust and fiduciary relationship exists between the plaintiff and the Minister with regard to the data and the knowledge derived from it.
The plaintiff maintains that the new drug sub mission filed by Apotex should have included the same type of data which the plaintiff's new drug submission contained. However, the plaintiff alleges that a substantial portion of the data which Apotex was required to submit pursuant to the Regulations was the plaintiffs confidential data and not available to Apotex. Therefore, by issuing a notice of compliance to Apotex, when its new drug submission was incomplete, the Minister applied the Regulations in a manner which was unequal and inconsistent with the manner and standard utilized in evaluating the plaintiffs new drug submission. The plaintiff alleges that the Minister has breached his duty to apply the Regu lations in a fair, equal and consistent manner. Furthermore, the plaintiff maintains that the Min ister breached his duty to verify the safety profile of Apotex' new drug and to ensure that Apotex met the requirements of the Regulations.
The plaintiff also alleges that, by using the plaintiffs data to process and evaluate Apotex' new drug submission, the Minister has breached his fiduciary relationship with the plaintiff.
As a result of the issuance of a notice of compli ance to Apotex, the plaintiff maintains that it will lose its proprietary rights over its data and conse quently the plaintiff will suffer a loss of competi tiveness in the market place.
In summary, the plaintiff alleges in its statement of claim that in processing Apotex' new drug submission the Minister has:
(a) failed to ensure that the Regulations were applied in a fair and consistent manner;
(b) failed to ensure the confidential nature of the plaintiff's data; and
(c) failed to ensure that the requirements of the Regulations were satisfied in the Apotex New Drug Submission.
The plaintiff seeks in its statement of claim the following relief against the defendants:
(a) a declaration that the Minister has breached his fiduciary duties to Glaxo, and that he failed in his statutory duties by issuing a N.O.C. [Notice of Compliance] to Apotex, and by applying the Regulations to Glaxo unfairly, inconsistently and in a discriminatory manner;
(b) prohibition to prohibit the Minister from using any Glaxo data or knowledge derived from it in the processing of any new drug submissions;
(c) mandamus to require the Minister to fulfill his statutory duties to protect the Canadian public's health and safety by revoking the Apotex N.O.C. for the Ranitidine drug and to fulfill his duties to Glaxo by maintaining the confidentiality of its information;
(d) an injunction to prevent the Minister from:
(i) issuing notices of compliance for Ranitidine until the Regulations have been complied with;
(ii) continuing to permit Apotex from selling or advertising its Ranitidine drug or taking any other action pursuant to its N.O.C.;
(iii) using the Glaxo data and knowledge derived from it in the processing of new drug submissions of other companies;
(iv) releasing the Glaxo data to other companies;
(e) an injunction to prevent the respondent Apotex from selling or advertising for sale the Apotex drug including all taking of orders, filling of orders and manufacturing, ship ping or handling of the Apotex Drug;
(f) damages arising out of:
(i) the Minister's breach of confidentiality out of the use of Glaxo data;
(ii) the Minister's breach of statutory duties and unfair and discriminatory application of the Regulations.
Before embarking upon an examination of the plaintiff's arguments in support of its application for an interlocutory injunction and the defendants' counter arguments, I intend to deal first with the issue of the plaintiffs status or locus standi to bring these proceedings. It is the position of the defendants that the plaintiff has no standing to attack the Minister's decision to grant the defen dant Apotex Inc. a notice of compliance as that decision does not directly affect the plaintiff. This submission is based on the premise that a party will not have sufficient standing to challenge an administrative decision of the government where the decision does not affect the legal rights of the party nor can it be said to affect their interests
prejudicially in any direct sense. Therefore, in order for a party to establish status to maintain an action, it must have a direct legal interest in the matter as compared to an economic interest. The defendants argue that the plaintiff in this case does not have a direct legal interest in the decision of the Minister regarding the defendant Apotex Inc. or to seek to review or be involved in the Minister's decision regarding the other companies; the plain tiffs concerns are purely economic in seeking to maintain its monopoly, a concern which does not translate into a legal interest.
The plaintiff submits that after a notice of compliance has been issued, a competitor of the recipient of the notice of compliance has, prima facie, the full right to commence an action in order to have the decision and the act of the Minister reviewed. Accordingly, if the plaintiff is of the view that the notice of compliance has been illegal ly issued to the defendant Apotex, then there is legal recourse available to the plaintiff in this Court. In support of this proposition, the plaintiff relies upon the Federal Court of Appeal decision in Rothmans of Pall Mall Canada Limited v. Minis ter of National Revenue (No. 1), [1976] 2 F.C. 500 wherein Le Dain J. stated, at pages 509-510:
It may be conceded that in certain contexts a competitive interest may be regarded as conferring status to challenge administrative action, as for example, on certiorari to quash the grant of a licence allegedly in excess of jurisdiction ....
The present case is not one that raises any question of the limits of statutory authority. The most that is raised is a question of administrative interpretation that the authorities are obliged to make in their application of the governing statute. Indeed, the action in this case is not of the kind that is subject to chal lenge .... There is no decision here determining rights or obligations in an individual case .... There is no duty to act judicially or fairly in a procedural sense .... there is no public duty of any kind that the appellants have a right to enforce.
The plaintiff maintains that it is clear law that a participant in a regulated industry has the prima facie right to object to and restrain official acts which are illegal or in excess of jurisdiction, and to
restrain unlicensed or illegal competition arising as a result.
Generally in administrative law cases there is seldom a dispute as to the standing or locus standi of the applicant to seek relief. Locus standi is understood to mean legal capacity to challenge an act or decision. The majority of proceedings for judicial review are brought by the party who is the direct object of the decision maker's attention, for example, where a licence is refused, property is expropriated or money is not paid. Locus standi does become an issue, however, when one moves outside of that class, for example, the interests of a property owner anticipating a serious loss of amenity as a result of an administrative decision to permit the building of a high rise or, as in this case, the interests of competitors.
The traditional rule has been that a person has standing to protect his own interest but has no standing to represent the interest of the public or to bring an action to restrain the violation of a public right. Where matters involving the public interest are concerned, the Attorney General, and not private individuals, has always been regarded as the appropriate person to seek relief. In Rosen- berg et al. v. Grand River Conservation Authority et al. (1976), 12 O.R. (2d) 496 (C.A.) and in Re Pim and Minister of the Environment et al. (1978), 23 O.R. (2d) 45 (H.C.J.) it was held that the Attorney General is the proper party to repre sent the public interest either in his own right or in relation to someone else. Accordingly, in matters of public nuisance, private individuals can only sue if they have suffered damage themselves or have suffered damages over and above that suffered by the public at large. The Attorney General has been generally recognized as always having standing to challenge any unlawful administrative action or unconstitutional legislation. In Attorney-General for Ontario v. Grabarchuk et al. (1976), 67 D.L.R. (3d) 31 (Ont. H.C.J.) Reid J. stated, at page 36:
There are numerous precedents in England and Australia for the proposition that the Attorney-General, as the protector of public rights and the public interest, may obtain an injunction where the law as contained in a public statute is being flouted. This is so notwithstanding that, (a) the statute itself may contain penalties of a different kind, and (b) all possible alternative remedies have not been exhausted. The position of the Attorney-General as custodian of the public interest is the same whether one speaks of England, Australia or Canada. This is clear from such decisions as the Public Accountants Council v. Premier Trust Co., [1964] 1 O.R. 386, 42 D.L.R. (2d) 411, and Cowan v. Canadian Broadcasting Corp., [1966] 2 O.R. 309, 56 D.L.R. (3d) 578. In the latter case, Mr. Justice Schroeder said for the Court of Appeal [at p. 314 O.R., p. 583 D.L.R.]:
Under our law, the Attorney-General is by law the repre sentative of the public interests which are vested in the Crown and are enforceable by the Attorney-General as the Crown's officer.
In bringing an action for an injunction in the area of public law a party will have standing where the interference with a public right also interferes with a private right of his own and where he has no private right but has suffered special damage as a result of interference with a public right. Where the harm done by the unlawful action is suffered by the public generally, then a private individual has no capacity to sue for an injunction to restrain the wrongful action. Again, this is the function of the Attorney General who represents the general public and has in mind the public's interest in ensuring that excesses of statutory authority or breaches of statutory duties are restrained.
Therefore, in order to have standing to challenge the decision of the Minister, the plaintiff must show that its legal rights or some other of its interests have been prejudicially affected in a direct sense. I am not satisfied that the plaintiff has satisfied either of these criteria. The sole motive on the plaintiff's part in bringing this application appears to me to be to prevent compe tition in a market where it has, up to the date of the Minister issuing a notice of compliance to the defendant Apotex Inc., enjoyed a virtual monopo ly. I agree with the defendants that such a concern on the part of the plaintiff does not translate into a legal right or interest sufficient to bestow on the plaintiff standing to bring the present action. In Rothmans of Pall Mall Canada Limited v. Minis ter of National Revenue (No. 1), supra, Le Dain J. stated, at pages 509-510:
A person should not, however, in my view, have the right tc interfere with or meddle in official action affecting an existin€ competitor for the sole purpose of preventing that competitor from obtaining some advantage, particularly where the actior complained of is something that the person complaining is free to take advantage of himself. That kind of interest appears tc have been clearly rejected in the case of Regina v. Commis sioners of Customs and Excise [1970] 1 W.L.R. 450 (albeit one of mandamus), where Lord Parker C.J. said [at page 456] "Secondly, as it seems to me, in any event the interest, or the motive, which is moving this application is what I would ter>r an ulterior motive, a motive of putting people out of business and nothing more." The public interest in competition must be borne in mind in exercising the judicial discretion as to whether to recognize standing in a competitive relationship.
As a competitor of the defendant Apotex Inc. it is not surprising that the plaintiff is concerned with the decision of the Minister to grant Apotex a notice of compliance. Nevertheless, that concern does not, in my opinion, constitute a legal interest. The Minister's decision to grant Apotex a notice of compliance has not altered the plaintiff's legal rights or imposed legal obligations upon it in any way. As previously stated, a competitor such as the plaintiff does not have a right to interfere with official action affecting another competitor for the sole purpose of preventing the latter competitor from obtaining some advantage. I am of the view that the effect on the plaintiff of the Minister's decision to issue a notice of compliance to the defendant Apotex Inc. is too indirect, remote or speculative to provide the plaintiff with standing under the general rule. Accordingly, the plaintiff must rely on what is essentially a public interest standing.
The plaintiff submits that, quite apart from its standing based upon violations of private rights, it has standing to pursue its action because:
(a) it has a sufficient personal interest in the legality of the actions of the Minister and the Department in using a Notice of Compliance to Apotex to bring it within the general requirement for standing to challenge an exercise of statu tory authority by an action for declaration and injunction;
(b) this Court has an additional discretion to recognize public interest standing in the circumstances of this case; and
(c) in light of the facts of this case, such discretion should be exercised in favour of the plaintiff.
It has now been established by the Supreme Court of Canada that there is a judicial discretion within the Court to recognize standing on the basis of public interest standing in certain limited cir cumstances. In Finlay v. Canada (Minister of Finance), [1986] 2 S.C.R. 607; (1986), 71 N.R. 338 the issue before the Court was whether a private individual has standing to sue for a decla ration that certain payments out of the Consolidat ed Revenue Fund were illegal on the ground that they were not made in accordance with the appli cable statutory authority. Specifically, the ques tion to be determined was whether a recipient of provincial assistance, who claimed to be prejudiced by certain provisions of the provincial legislation respecting such assistance, should be recognized as having standing to seek a declaration that pay ments by the federal government to the provincial government of contributions to the cost of such assistance, pursuant to the Canada Assistance Plan, R.S.C. 1970, c. C-1, were illegal as being contrary to the authority conferred by the Plan.
Le Dain J. writing for the Court held that the answer to these questions involved a consideration of the discretionary control over standing to assert a purely public right or interest by an action; something which has traditionally been vested in the Attorney General. What had to be considered was whether the approach to public interest stand ing reflected in the decisions of Thorson v. Attor ney General of Canada et al., [1975] 1 S.C.R. 138; Nova Scotia Board of Censors v. McNeil, [1976] 2 S.C.R. 265; and Minister of Justice of Canada et al. v. Borowski, [1981] 2 S.C.R. 575, in which there was a challenge to the constitutional ity of legislation, applied to a non-constitutional challenge to the statutory authority for adminis trative action.
The Supreme Court held that the respondent did not have a sufficiently direct, personal interest in the legality of the federal cost-sharing payments to bring him within the general requirement for standing to sue, without the consent of the Attor-
ney General, for a declaration or an injunction to challenge an exercise of statutory authority. The Court was of the opinion, however, that the respondent should be recognized, as a matter of judicial discretion, as having public interest stand ing to bring his action. The approach to public interest standing reflected in the judgments of the Court in Thorson, McNeil and Borowski, in which there was a challenge to the constitutionality or operative effect of the legislation, was extended to a non-constitutional challenge by an action for a declaration as to the statutory authority for public expenditure or other administrative action. The respondent met the criteria set out for the discre tionary recognition of public interest standing in Thorson, McNeil and Borowski in that his action raised justiciable issues, the issues were serious ones and the respondent had a genuine interest in them. Accordingly, the respondent was recognized as having standing to sue for injunctive as well as declaratory relief.
In my opinion, the plaintiff in the case at bar fails to meet the requirements set out in the Finlay decision (supra) which would bestow upon it public interest standing to challenge the Minister's decision to issue a notice of compliance to the defendant Apotex Inc. In order to acquire public interest standing to challenge the validity of administrative procedures, a party must demon strate that it has a special interest in the legislation and that it will suffer special prejudice as a result of the illegal actions. A party whose legal rights are not affected and who is merely seeking to enforce public rights will not be granted standing to seek a declaration or injunction. This principle of law was expressed by Le Dain J. in the Finlay decision (supra) at pages 620-621 S.C.R.; 353-354 N.R. where he stated:
In Australian Conservation Foundation, supra, in which the High Court of Australia applied the rule in Boyce to deny public interest standing to challenge the validity of administra tive procedures respecting a requirement for an environmental impact statement, Gibbs J., at p. 268, made the following
observations concerning the meaning to be given to the words "special damage peculiar to himself' in Boyce:
Although the general rule is clear, the formulation of the exceptions to it which Buckley J. made in Boyce y Padding- ton Borough Council is not altogether satisfactory. Indeed the words which he used are apt to be misleading. His reference to "special damage" cannot be limited to actual pecuniary loss, and the words "peculiar to himself" do not mean that the plaintiff, and no one else, must have suffered damage. However, the expression "special damage peculiar to himself', in my opinion should be regarded as equivalent in meaning to "have a special interest in the subject matter of the action".
In Borowski, supra, Laskin C.J., dissenting, referred to the general rule as follows at p. 578: "Unless the legislation itself provides for a challenge to its meaning or application or validity by any citizen or taxpayer, the prevailing policy is that a challenger must show some special interest in the operation of the legislation beyond the general interest that is common to all members of the relevant society.
In my view the plaintiff has not demonstrated that it will suffer any extraordinary prejudice as a result of the actions of the Minister. The concern that public health and safety may be jeopardized by the issuance of a notice of compliance to the defendant Apotex Inc. is a concern which the plaintiff shares with the general public, but it is not a particular or unique interest to the plaintiff which satisfies the test for public interest standing.
Furthermore, the issues raised in the within proceedings are not justiciable. No questions of law, in my opinion, have been raised for resolution by the plaintiff, but rather the plaintiff is seeking to have this Court review the merits of the regula tory decision taken by the Minister and to chal lenge the sufficiency of the evidence before the Minister prior to his decision to issue the notice of compliance to the defendant Apotex Inc.
The plaintiff is in fact asking this Court to review the findings of the Minister's officials who were responsible for examining the Apotex new drug submission and making recommendations which led to the issuance of the Apotex notice of compliance. Not only is the plaintiff asking me to review these findings, it is also seeking to have the Court substitute the Minister's opinion with its own. I think it is trite to say that this Court is not in a position nor does it befit the Court's function
to second-guess the opinion of the technical experts employed by the Minister.
As previously stated, the plaintiff has no gen uine interest in any issue raised in this case other than a purely competitive or economic interest.
Therefore, it is my conclusion that the plaintiff has no standing to bring the present action. While that finding would dispose of the matter, I intend to deal briefly with the other issues raised, in the event that my finding on this question should not be sustained.
The plaintiff submits that in accordance with the House of Lord's decision in American Cyana- mid Co. v. Ethicon Ltd., [1975] A.C. 396; [1975] 1 All ER 504, the test for an interlocutory injunc tion will be satisfied if the plaintiff shows the following: 1) there is a serious issue to be tried; 2) pending trial the plaintiff is at risk of suffering some injury which cannot be compensated for or adequately remedied other than through the oper ation of an interlocutory injunction, that is, the plaintiff is at risk of irreparable harm; 3) the balance of convenience favours the plaintiff; and 4) the injunction will preserve the status quo.
It is argued by the plaintiff that the facts of this case clearly establish a number of serious issues to be tried. To begin with there is the issue of the serious risk to the health and safety of the Canadi- an public as a result of the Minister's unlawful failure to require the defendant Apotex Inc. to comply with the Regulations with the result that the safety and efficacy of the Apotex drug has not been verified. The next issue is the discriminatory manner in which the plaintiff has been treated as a result of the Minister's unlawful failure to apply the Regulations in an equal, fair and consistent manner in his evaluation of the new drug submis sion of the defendant Apotex. The third issue, argues the plaintiff, is the Minister's failure to maintain the confidentiality of the plaintiff's data by unlawfully utilizing that data during its evalua tion of the new drug submission of the defendant Apotex Inc. and in formulating the decision to
issue a notice of compliance to Apotex. Finally, the plaintiff submits there are the issues of the Minis ter's lack of authority to grant a notice of compli ance to the defendant Apotex and the issue of Apotex selling its drug at a time when its safety and efficacy have not been verified pursuant to the Regulations and that the selling of such drugs directly affects the reputation of the plaintiff and its drug Zantac.
The plaintiff further argues that if this Court does not grant an interlocutory injunction, then irreparable harm not compensable in damages will be suffered by it. It is the plaintiffs position in this regard that the Court must have foremost concern for the safety of the intended users of the drug and that the Canadian public is at serious risk as long as the defendant Apotex' drug is being manufac tured and sold when its safety and efficacy have not been established and verified by the Minister pursuant to the Regulations. In turn, any harm suffered by the public will, the plaintiff argues, be inextricably linked to the long-standing reputation of the plaintiff and its drug Zantac. The marketing of the drug of the defendant Apotex when its safety has not been established and verified pursu ant to the Regulations will cause the public, according to the plaintiff, to lose confidence in the plaintiff's drug and will, as a result, detrimentally affect the reputation of Glaxo.
It is the plaintiffs contention in support of its action for an interlocutory injunction that as be tween itself and the defendant Apotex Inc. the balance of convenience favours the plaintiff because the reputation of the plaintiffs drug as a safe and effective one is of long standing in the market. The defendant's drug, on the other hand, is a new drug in Canada which has only been marketed for a short time. In the event that the Minister's failure to verify the safety and efficacy of the defendant's drug results in adverse reaction to members of the Canadian public to whom it is prescribed, then the plaintiffs drug will be directly and immediately affected. The plaintiff argues that the protection of the Canadian public by ensuring that only safe drugs are sold and adver-
tised for sale in Canada must outweigh any short- term harm to the defendant Apotex as a result of the interruption in the sale of its drug until its safety has been fully established pursuant to the Regulations.
Finally the plaintiff submits that the purpose of an interlocutory injunction is to preserve the status quo and since the defendant Apotex has just com menced marketing its drug, it is only just that the status quo in this case be preserved pending trial because not to do so would be to permit the public to suffer a serious and unacceptable risk to health and safety.
As to the plaintiff's first argument in support of granting an interlocutory injunction, that there are serious issues to be tried, I have previously expressed my opinion that the facts of this case do not reveal any justiciable issues.
The legislative scheme set out in the Food and Drugs Act and the Regulations provides a mech anism whereby the safety and efficacy of a new drug on the Canadian market is assessed and monitored. The Regulations contemplate a process in which the manufacturer of a new drug acquires the right to sell or advertise that drug for sale only when the Minister is satisfied that the claims made by the manufacturer for the drug are substantiat ed. The Minister signifies his satisfaction by issu ing a notice of compliance. The Minister's decision to issue such a notice is discretionary. In exercising his discretion, the Minister weighs the benefit of the drug against the foreseeable risk of adverse reaction to it. In Pfizer Canada Inc. v. Minister of Health & Welfare et al. [(1986), 12 C.P.R. (3d) 438 (F.C.A.)], the Court held that the Minister's decision to issue a notice of compliance for a particular drug is a decision made on the basis of public health considerations. The Minister in exer cising his discretion weighs the predicted benefit of the drug in relation to the foreseeable risk of adverse reaction to it. The Minister's determina tion is one made in contemplation of public health and represents the implementation of social and economic policy.
The function of the Minister and his responsibil ity in administering the Act and Regulations was described by Walsh J. in Apotex Inc. v. Canada (Attorney General), [1986] 2 F.C. 233; 9 C.P.R. (3d) 193 (T.D.), at pages 241 F.C.; 198 C.P.R. in the following terms:
It is the responsibility of the Minister and his staff of technical experts to apply the Act and Regulations and protect the public, not to protect commercial and economic interests of competitors or even originators of the product in question.
In my opinion, the nature of the power bestowed on the Minister by the legislation, the subjective determination as to what additional information is required prior to a notice of compliance being issued, the subjective requirement that the Minis ter be satisfied that the new drug submission com plies with the Regulations, the absence of any requirement in the legislation that competitors or other manufacturers participate in the process, and the scientific nature of the inquiry into the safety or efficacy of the drug, make clear that the Minis ter's decision is not open to review at the suit of a competitive manufacturer.
If the discretion bestowed upon the Minister by the legislation has been exercised bona fide and has not been influenced by irrelevant consider ations nor exercised arbitrarily or illegally, then this Court is not entitled to interfere, even if it would have exercised the discretion in a different manner. That this is the criteria by which the exercise of a statutory discretion must be judged is made clear by the decision of the Supreme Court of Canada in Boulis v. Minister of Manpower and Immigration, [ 1974] S.C.R. 875.
In this case, the plaintiff seeks to have the Court review the merits of the regulatory decision made by the Minister with respect to the new drug of the defendant Apotex Inc. and challenges the suffi ciency of the evidence which was before the Minis ter in relation to this new drug. The plaintiff, as far as I can ascertain, simply disagrees with the exercise of the Minister's discretion. The present action does not involve any challenge to the validi ty of the legislation or the Regulations thereunder or the statutory or regulatory authority that is
being exercised; the action does not amount to anything more than an attempt by the plaintiff to have this Court review a regulatory decision which, in my opinion, has no bearing on the plaintiff.
The evidence presented by the plaintiff relates to the merits of the Minister's decision and to the sufficiency of the evidence before the Minister prior to making his decision to issue a notice of compliance to the defendant Apotex. In my view, there exists a serious doubt as to whether the weight and sufficiency of the evidence before the Minister is even open to attack by the plaintiff. In any event, there is no evidence to support the plaintiff's assertion that the Minister could not have satisfied himself as to the safety and efficacy of the defendant's drug. In this regard, the plain tiff is relying on pure speculation. The uncon- tradicted and direct evidence of the Minister's officials is that all the necessary data and informa tion was submitted by the defendant Apotex in compliance with the Regulations and that the Regulations were satisfied leading to the issuance of a notice of compliance signifying the safety and efficacy of the defendant's drug. The plaintiff has failed to put forward anything which would lead me to disregard this evidence of the Minister's officials and has been unable to produce evidence which contradicts or otherwise negates it.
With respect to the plaintiff's assertion that the Minister must have wrongfully utilized the plain tiffs data in processing the defendant Apotex' new drug submission, the plaintiffs evidence again amounts, in my opinion, to nothing but sheer speculation without any direct and probative evi- dentiary value. The plaintiff maintains that since the defendant Apotex could not have had the resources, technical expertise or the time to pro duce a new drug submission sufficient to meet the requirements of the Regulations and allow the Minister to satisfy himself as to the safety and efficacy of the Apotex drug, then the Minister must have utilized the plaintiffs data in order to satisfy himself that the defendant's drug was safe.
The evidence simply does not support the plain tiff's allegations; the defendant Apotex firmly denies that any confidential data of the plaintiff was disclosed to it by the Minister and his offi cials; the statement of the Crown witnesses in their affidavits and cross-examination are to the effect that no confidential data of the plaintiff was dis closed to the defendant Apotex except in one limited instance on February 16, 1987 when cer tain of the plaintiff's data was compared to confi dential data of the defendant Apotex. However, the sworn evidence of the Minister's officials was that the comparison in question was not used in assessing the Apotex new drug submission. The evidence further established that the departmental personnel were fully aware that they were not to use the confidential data of a drug manufacturer when assessing the data of another. Again the plaintiff was unable to provide any contradictory evidence which would lead to a finding that its confidential data had been used by the Minister in assessing Apotex' new drug submission. Indeed, the contents of the Apotex new drug submission have never been seen by the plaintiff and no information was made available to the plaintiff either directly or indirectly as to the contents of the Apotex new drug submission. Accordingly, I am of the view that there has not been any unau thorized use of the plaintiffs confidential informa tion.
The final allegation of the plaintiff is that the Minister discriminated against it by requiring more information and data in its new drug submis sion than was required of the defendant Apotex. The plaintiff bases this assertion upon the allega tion that generic drug manufacturers are not required to submit the extensive information and data which is required of originator manufactur ers.
Once again I find no evidence to support this argument. In fact, the evidence of the Minister's officials is that the very same standards are applied to all manufacturers without regard to
whether they are an originator or a generic manu facturer. Further it is clear that the body of knowl edge available to the defendant regarding the drug Ranitidine was greater than that which was avail able to the plaintiff at the time of its new drug submission. Accordingly, some matters not known or not proven at the time of the plaintiff's new drug submission had become matters of public knowledge by the time the defendant Apotex made its new drug submission. I am satisfied that if there did exist any differences in treatment of the plaintiff, such differences arose out of circum stances which differed from those in existence at the time when the defendant's new drug submis sion was being considered and not because the treatment afforded to the plaintiff differed from that afforded to any other manufacturer.
In my opinion, the plaintiff has failed to satisfy the requirements for the issuance of an interlocu tory injunction. It is trite law that an interlocutory injunction is an extraordinary legal remedy which is to be granted only in special cases. The thresh old test requires the plaintiff to establish a strong prima facie case. It is true that a lower test has, in the past, been applied and has been described as requiring the plaintiff to establish a serious ques tion or arguable case. Nevertheless, the Court has indicated on a number of occasions that the former test is to be preferred. See for example Astra Pharmaceuticals Canada Ltd. et al. v. Apotex Inc. (1984), 1 C.P.R. (3d) 513 (F.C.T.D.), at page 517; Pfizer Canada Inc. v. Attorney-General of Canada et al. (1986), 8 C.P.R. (3d) 532 (F.C.T.D.), at page 535; Apple Computer Inc. et al. v. Macintosh Computers Ltd. et al. (1985), 3 C.P.R. (3d) 34 (F.C.T.D.), at page 39; Syntex Inc. v. Apotex Inc., [1984] 2 F.C. 1012; 1 C.P.R. (3d) 145 (C.A.), at pages 1023-1024 F.C.; 153- 154 C.P.R.; and Wyeth Ltd. v. Novopharm Ltd. (1985), 7 C.P.R. (3d) 399 (F.C.T.D.), at pages 404-405.
In order to meet the prima facie test, the right asserted by the plaintiff must be very clear so as to leave little doubt as to what the result at trial would be. In considering whether this threshold test has been met, the Court must consider the nature of the plaintiff's evidence and its probative value. In the case at bar, for the reasons which I have hereinbefore discussed, the plaintiff has not demonstrated a strong prima facie case. The plain tiff cannot even meet the lower standard for the granting of an interlocutory injunction because, in my view, it cannot show that there is a serious or arguable issue to be tried. As stated, I have grave doubts as to whether the plaintiff has any standing whatsoever to bring this application. In any event, the plaintiff has failed to provide the Court with any probative evidence to support its allegations and which would warrant the issuance of an inter locutory injunction.
As to the question of irreparable harm, it is incumbent on the plaintiff to demonstrate that such harm is not compensable by an award of damages and the evidence must be clear and not speculative. It is not sufficient for the purpose of granting an interlocutory injunction that mere dif ficulty in calculating the quantum of damages be shown. In the present case the plaintiffs claim of irreparable harm is speculative but in any event any damages which the plaintiff may suffer are calculable as they will simply result from the sale of the defendant Apotex' drug; that is, the plaintiff will suffer a loss in sales readily calculable by reference to the sales made by the defendant Apotex Inc. Any of the other claims made by the plaintiff that it will suffer irreparable harm because of some adverse effect on its reputation as a result of the sale of the defendant Apotex' drug are, as I have previously stated, purely speculative.
Accordingly, the plaintiff having failed, in my opinion, to make out a prima facie case and having failed to show irreparable injury not compensable by damages, the balance of convenience favours maintaining the status quo until trial.
For the above reasons, the plaintiff's application for an interlocutory injunction is dismissed.
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