This briefing contributes to the current debate around IP rights
for pharmaceuticals in Canada. Against the backdrop of the CETA trade negotiations, Norton Rose
Group's Toronto-based head of pharmaceuticals and life
sciences, Patrick E. Kierans, and colleagues Kristin Wall and Jill
Daley employ a comparative study to highlight why Canada should
answer the European Union's call for heightened IP protection
for pharmaceuticals. On average, the EU is approving new drugs faster and enabling
patent term restoration, leaving Canadian innovators doubly
disadvantaged compared with their second-largest trading partner.
Implementing patent term restoration and extending the term of data
protection will help to level the playing field with Europe. For
the majority of the sampled products, extending data protection by
two years appears to provide greater security for innovators
without extending overall IP exclusivity for innovative medicines.
Increasing the rate of drug approval in Canada will diminish any
market exclusivity impact of data protection and patent term
restoration, while giving Canadians earlier access to new
medicines. See also our July 2011 briefing:
"European Union – Canada debate IP rights for
pharmaceuticals" (assessing proposed legal reforms). Canada and the European Union met in Ottawa this October for
what may be the last full round of trade negotiations on the
Comprehensive Economic and Trade Agreement (CETA). The issue of
harmonizing European and Canadian intellectual property rights for
pharmaceuticals remains open for negotiation. Having already identified pharmaceutical IP rights as an area
where Canada must improve, the EU has proposed three legal or
regulatory reforms: This briefing focuses on the latter two reforms (data protection
and PTR) as both reforms have the potential to affect drug market
exclusivity in Canada. While important to innovators for greater
market certainty, the proposed reform on effective innovator appeal
rights is not specifically addressed as it does not directly impact
overall drug market exclusivity, but rather acts as safeguard
against a premature finding of patent invalidity or
non-infringement. Data protection in Canada presently provides eligible innovative
drugs with eight years of drug market exclusivity, with the
possibility of a six-month extension for submitting pediatric trial
data. Generic manufacturers are prohibited from filing a
comparative drug submission relying, directly or indirectly, on the
innovative drug's clinical trial data during the first six
years of the eight-year term. No generic will be granted marketing
approval until the applicable data protection term has expired. Data protection in Europe operates similarly, except the total
market exclusivity provided is typically 20 percent longer (i.e.,
10 years in total with an eight-year no-filing period). An eleventh
year of data protection can also be granted for approval of a new
use, dosage form, etc. PTR provides drug market exclusivity by accounting for some of
the lost patent term benefit during a drug's development and
regulatory approval phase. It is not unusual for a new drug to
enter the Canadian market with less than half of its 20-year patent
term remaining. PTR is available in Europe in the form of
"supplementary protection certificates" (SPC). SPCs
cannot restore more than five years to the patent and cannot extend
a drug's remaining patent term beyond 14 years. Canada is one
of the only developed countries that does not provide for any form
of PTR. A comparative look at drug market exclusivity in the EU (i.e.,
data protection, patent term, SPC) and Canada (i.e., data
protection, patent term) supports the case for heightened data
protection and PTR in Canada. In order to consider the impact of adopting the proposed IP
reforms on data protection and PTR in Canada, the authors compared
the total market exclusivity provided by data protection and
patents for a sample of 22 drugs approved in both Canada and the
EU.1 Specifically, the 22 candidate drugs were selected
from Canada's Register of Innovative Drugs (Innovative
Register), which listed (as of July 2011) 105
"innovative" human drugs granted data protection in
Canada. Twenty-two drugs were selected in order to obtain a 20 percent
representative sample of the 105 drugs listed on the Innovative
Register. Candidate drugs with the most recent approval dates were
selected, and include products with significant IMS global
sales.2 In order to assess the comparative drug market exclusivity
provided by data protection and patents in Canada
and Europe, candidate drugs were required to have: (1) data
protection; (2) patents listed on the Canadian Patent Register; and
(3) a central European market authorization. The following data was collected for each candidate drug in both
Canada and the EU: Slower Canadian drug approval times as compared with the
EU make a strong case for implementing patent term restoration in
Canada. In 17 of the 22 candidate drugs considered (77%), drugs were
approved earlier in the EU than in Canada: time differences ranged
from five years (as with Abilify) to four months (as with Ilaris,
Daxas). Of the sample drugs considered, Canadian drugs were
approved an average of 451.4 days later than in the EU. Since the date a new drug submission (NDS) is filed in Canada is
generally not available in the public domain, we were not able to
compare the relative speed of approval for the sample drugs
selected. However, according to Health Canada's data on drug
submission approval times, the median NDS approval time for 2010,
including priority approvals, was 433 days – 1,563 days
being the longest approval time and 216 days the shortest
approval.7 Comparatively, the European Medicines Agency
(EMA) annual report for 2010 states that the total average approval
time for central European approvals granted in 2010 was 281
days.8 As a result, EU drugs were, on average, approved
152 days faster than the median Canadian approval. Slower drug approval denies Canadians timely access to new
medicines. Slower drug approval also reduces the patent term: drugs
launched in Canada may have far less of the 20-year patent term
remaining than drugs launched in the EU. Canada already clearly stands out amongst virtually all OECD
(Organisation for Economic Co-operation and Development) countries
for failing to provide PTR. This briefing highlights the impact of
this omission in the Canadian IP regime. EU drugs benefit from
longer patent terms due to faster drug approval; as well as this,
patent terms for EU drugs can be extended (for up to five years) to
compensate for any portion of patent term lost for time spent in
regulatory drug approval. Implementing PTR in Canada would compensate in part for the
patent term benefit lost due to Canada's slower rate of drug
approval. Additionally, to the extent that Canada's approval
times materially improve, the likelihood of any PTR being granted
would decrease significantly. Harmonization with the EU (i.e., extending data
protection from eight years to 10 years in Canada) would not extend
the total market exclusivity granted to Canadian drugs in the
majority of cases. Of the 22 drugs sampled, only eight Canadian drugs had total
market exclusivity terms that would be extended were Canada to
adopt the EU's data protection regime. This is because most of
the candidate drugs considered had patent protection that extended
beyond the term of data protection, meaning that the extension of
data protection from eight years to 10 years in Canada would have
no impact in the majority of cases. In order to further verify this result, the authors considered
all 105 of the human health drugs listed on Health Canada's
Innovative Register. Of these drugs, 81 had patents listed on the
Canadian Patent Register; 58 of 81 (72%) benefited from patent
terms that extended beyond the data protection term. On average,
the patent term for these 58 drugs extended 4.5 years past the data
protection term. With respect to the potential impact of PTR, only five of the 22
sampled products had been granted SPCs to date in Europe, which
resulted in an average of two to three years of market time
compensation for these five products.9 As a result, for drugs with data and patent protection in
Canada, it may be concluded that total market exclusivity is
governed primarily by the patent term, and not by the term of data
protection. Here again, if Canadian drugs were approved faster,
earlier approval dates would further diminish the impact of greater
data protection market exclusivity over and above patent protection
or any PTR. A comparative look at 22 drugs approved in both the EU and
Canada reveals that adopting the proposed CETA IP reforms will not
automatically result in longer terms of drug market exclusivity. In
many cases, the overall term of drug market exclusivity is governed
by the 20-year patent term, which is the same in both Canada and
the EU. Canadian innovators are losing patent term benefit at the front
end due to the length of time taken to comply with regulatory
requirements. The EU is approving new drugs earlier and
facilitating PTR, leaving Canadian innovators doubly disadvantaged,
which has a significant impact on global marketing and R&D
investment decisions. Implementing PTR is a necessary step to bring
Canada up to the same level of patent protection as virtually all
of its major trading partners. Extending the data protection term
in Canada will provide innovators with more certainty, without
extending market exclusivity beyond that already fixed by the
patent term in the majority of the drugs considered. Substantially
improving the rate of new drug approval in Canada will also
diminish the market exclusivity impact of data protection over and
above patent protection, at the same time granting Canadians
earlier access to new medicines. * This briefing does not constitute legal advice. The data
collected on market exclusivity was done for the sole purpose of
this briefing. The authors do not represent or warrant the
applicability or expiry of any term of data protection, patent term
or patent restoration term for the drugs considered.* 1 Sample drugs considered: Champix, Abilify, Cymbalta,
Gardasil, Yondelis, Actemra/Ro-Actemra, Brilinta/Brilique, Ilaris,
Prolia, Victoza, Votrient, Daxas, Kuvan, Jevtana, Byetta,
Uloric/Adenuric, Gilenya, Cimzia, Banzel/Inovelon,
Rapaflo/Silodyx/Urorex, Orencia, and Sprycel. 2 IMS, top-line market data, global and USA sales, accessed
at: http://www.imshealth.com/portal/site/ims/menuitem.5ad1c081663fdf9b41d84b903208c22a/?vgnextoid=fbc65890d33ee210VgnVCM10000071812ca2RCRD&vgnextfmt=default
(last accessed July 2011). 3 Canadian source: Health Canada, Register of Innovative
Drugs, accessed at: http://www.hc-sc.gc.ca/dhp-mps/prodpharma/applic-demande/regist/index-eng.php
; EU source: European Medicines Agency, Database of Human
Medicines, accessed at: www.ema.europa.eu/ema/index.jsp?curl=pages/includes/medicines/medicines_landing_page.jsp&murl=menus/medicines/medicines.jsp&jsenabled=true. 4 Canadian source: Health Canada, Register of Innovative
Drugs (as above); EU source: Unlike Canada, the EU does not
maintain a public register of drugs eligible for data protection.
The data protection expiry date was calculated by applying the
relevant legislation. See Directive 2004/27/EC of March 31, 2004,
and EMA procedural advice for users of the centralised
procedure for generic/hybrid applications (January 2011).
Based on the latter, the data protection expiry date in the EU was
calculated as follows: (1) It was presumed that drugs granted data
protection in Canada would also have been granted data protection
in the EU; (2) 10 years were added to the date of the central
marketing authorization to determine the data protection expiry
date; (3) Based on drug approval information available on the EMA
website, only one drug (Prolia/Xgeva) possessed a second approval
that may have qualified for an 11th year of data
protection. 5 Patent listing and expiry dates were obtained from the
Canadian Patent Register located at: www.hc-sc.gc.ca/dhp-mps/prodpharma/patregbrev/index-eng.php.
The equivalent EU patents were located with the Canadian
Intellectual Property Office (CIPO) website, the European Patent
Office website and QPAT located at: www.qpat.com/index.htm. 6 Information on supplementary protection certificates was
obtained from the UK Patent Office at www.ipo.gov.uk/p-find-spc.htm. 7 Health Canada, Therapeutic Products Directorate Drug
Submission Performance Annual Report January – December
2010 (May 16, 2011), page 16 (available from Health Canada on
request). 8 European Medicines Agency, Annual Report 2010 (June 28,
2011), page 34, accessed at: www.ema.europa.eu/ema/index.jsp?curl=pages/about_us/document_listing/document_listing_000208.jsp&mid=WC0b01ac058002933d&jsenabled=true. 9 Champix, Yondelis, Victoza, Banzel/Inovelon and
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A consideration of why Canada should answer the European
Union's call for heightened IP protection for
pharmaceuticals
Introduction
Data protection and patent term restoration – Canada
vs. EU
Methodology
Findings
Conclusion
Footnotes
ARTICLE
25 October 2011
CETA Trade Negotiations 2011 – Drug Market Exclusivity In The EU And Canada
consideration of why Canada should answer the European
Union's call for heightened IP protection for
pharmaceuticals