CHANCERY DIVISION
PATENTS COURT
Strand, London, WC2A 2LL |
||
B e f o r e :
____________________
WARNER-LAMBERT COMPANY, LLC |
Claimant |
|
- and - |
||
(1) ACTAVIS GROUP PTC EHF (2) ACTAVIS UK LIMITED (3) CADUCEUS PHARMA LIMITED |
Defendants |
|
- and - |
||
NATIONAL HEALTH SERVICE COMMISSIONING BOARD |
Respondent |
|
- and - |
||
(1) TEVA UK LIMITED (2) GENERICS (UK) LIMITED trading as MYLAN (3) DR REDDY'S LABORATORIES (UK) LIMITED (4) CONSILIENT HEALTH LIMITED (5) SANDOZ LIMITED (6) DEPARTMENT OF HEALTH |
Interested Parties |
____________________
Jessie Bowhill (instructed by DAC Beachcroft LLP) for the Respondent
Adrian Speck QC (instructed by Powell Gilbert LLP) for the Defendants
Michael Tappin QC (instructed by Pinsent Masons LLP) for the First Interested Party
Kathryn Pickard (instructed by Taylor Wessing LLP) for the Second Interested Party
Hearing date: 26 February 2015
____________________
Crown Copyright ©
MR JUSTICE ARNOLD :
Introduction
"73. As I understand the evidence and arguments before me, it is more or less common ground between all concerned that the best solution to the problem which arises in this case is to try to ensure that prescribing doctors prescribe pregabalin for the treatment of pain by reference to the brand name Lyrica rather than by reference to the generic name pregabalin. That will ensure that pharmacists only dispense Lyrica when presented with prescriptions for pregabalin which are (at least so far as the prescriber is concerned) for pain without requiring the pharmacist to know the indication for which pregabalin has been prescribed.
74. As I hope I have made clear, it does not lie within the power of either Warner-Lambert or Actavis to ensure that this happens. It depends ultimately on the behaviour of the prescribers. The prescribers can be, and are already being, influenced in a number of ways, in particular by the NICE guidance and by communications via the CCGs (and Welsh Health Boards). Warner-Lambert is understandably concerned that this is not enough, and that what is required is for two further things to happen. Actavis agree that these steps are desirable.
75. First and most importantly, Warner-Lambert contends that prescribers should be given clear guidance that, in this situation (and other future situations like it), the proper course is to prescribe by reference to the brand name for the patented indication and by reference to the generic name for non-patented indications. Counsel for the Department of Health informed me that the Department is not a position to issue such guidance. Under the National Health Service Act 2006, the Secretary of State is under a duty to promote the autonomy of NHS England and may only intervene if NHS England is guilty of a significant failure properly to discharge its functions. The Department does not consider that a failure by NHS England to issue guidance with regard to the relevance of the Patent to the prescribing of pregabalin would constitute such a failure. The Department notes, however, that NHS England may consider it appropriate to issue such guidance. If NHS England were to do so, the Department would not consider that inappropriate. I presume that the position is much the same with regard to NHS Wales. Clearly, it is a matter for NHS England and NHS Wales to decide whether or not to issue such guidance, but for my part I would encourage them to consider doing so as a matter of urgency.
76. Secondly, Warner-Lambert contends that prescription software suppliers should alter their software to make it easier for doctors to prescribe pregabalin by brand name for treating pain. Again, I would encourage them to do so. This is less important, however, since the existing software does permit Lyrica to be prescribed.
77. Before proceeding further, it is necessary to emphasise two points. The first is that Warner-Lambert is not seeking any order against Actavis which will make either of the two things described above happen. The second is that, if those things do happen sufficiently quickly, the relief which Warner-Lambert seeks against Actavis on this application will become unnecessary. It follows that, in deciding whether to grant Warner-Lambert the relief it seeks, I need take into account the prospects of those steps being taken by those responsible. I consider that there is a reasonable prospect of NHS England and NHS Wales issuing guidance in the near future, but a lower prospect of software suppliers modifying their software quickly. "
"… at present I do not think that the correct formulation of prescriptions for pregabalin is an issue on which we should express a view on behalf of NHS England, at least on a timescale that is likely to be material to the litigation under way."
NHS England
The Court's jurisdiction to make the order
NHS England's power to issue the guidance
Proportionality, barriers to legitimate trade and safeguards against abuse
The ambit of the cross-undertaking
Principles
"When the court makes an order for an injunction, it should consider whether to require an undertaking by the applicant to pay any damages sustained by a person other than the respondent, including another party to the proceedings or any other person who may suffer loss as a consequence of the order."
"32. Paragraph 5.1A of the practice direction was, I believe, inserted into the practice direction following the judgment of the Court of Appeal in SmithKline Beecham v. Apotex [2006] EWCA Civ 658, in particular, I suspect, following what Jacob LJ said in paragraph 29 of that judgment. Since then, as far as I am aware and as far as counsel and the solicitors instructing them have been able to show me, there has been no case dealing with the principles to be applied in the application of paragraph 5.1A.
33. In considering the matters which the Practice Direction requires, the court ultimately is undertaking the exercise of discretion with the aim of doing justice not just to the parties before the court, but generally. If a class can be identified at this stage for whom justice demands a cross-undertaking should cover before an injunction is ordered or an undertaking accepted, then the court should require the cross-undertaking to be drafted accordingly. For example, in the case of freezing orders, as I understand it, it is common practice and has been for many years that the cross-undertaking in question is drafted so as to extend to cover the expenses of persons, such as banks, which they might incur in complying with the order.
34. However, it seems to me that for the court to exercise this discretion, it needs to know, in some way at least, who the relevant persons are. They do need to be identified at least in some suitable way and also the court needs to know what may be the nature of the potential loss or harm which is said may potentially arise.
35. A cross-undertaking has been called the price of an injunction and, in the end, it seems to me that the person paying that price needs to know with reasonable certainty what it is. It could be, in a given case, that the price demanded would be too high. A party seeking an interim injunction, or accepting undertakings in lieu of an interim injunction, is entitled to be wary of an indeterminate and open-ended cross-undertaking in favour of persons unknown.
36. There are two classes covered by the draft: other companies in the Actavis Group and customers or potential customers. I will deal with them separately.
37. As far as other companies in the group are concerned, I am told on instructions by Mr. Meade that the Actavis Group will be buying the API (that is to say, the raw chemical ingredients) in from third parties and will then manufacture the tablets and sell them. It seems to me that it is unreal for the patentee (the defendant) to say that they need to know precisely which companies in the Actavis Group will be undertaking these tasks. The tasks in question are clear. I can understand, as Mr. Meade submits, that when an injunction of this kind has to last for a significant period of time, it is quite possible that a group such as the Actavis Group will undertake restructurings in such a way that it would mean that although today the Actavis Group knows who exactly is going to sell the product, in future the chain of companies which might be involved will change. It would be extremely inconvenient, and ultimately pointless, to require companies in the position of Actavis in this case to keep coming back to court every time they may or may not be involved in any kind of restructuring in order to reorganise the companies for whom the cross-undertaking of benefit. The reason I say that is because the patentee in this case knows that this cross-undertaking is a cross-undertaking in favour of the group who is going to sell the product in question. The nature of the loss that the group would rely on in any claim on the cross-undertaking is not going to change during the course of the action and the pendency of this undertaking and cross-undertaking. Accordingly, it seems to me that the concept underlying the language proposed by Actavis in this case is a fair and proper one and the language proposed achieves the desired objective. I will accept the order proposed by Mr. Meade in so far as it relates to companies in the Actavis Group. I should emphasise that it does mean, in my judgment, that the cross-undertaking is now being granted for the benefit of those companies even though they may not be identified until after judgment."
Teva
Actavis
Dr Reddy's
Annex
UPON the application of the Applicant by application notice dated 20 February 2015 against the Respondent ("Application")
AND UPON reading the documents recorded on the court file as having been read
AND UPON hearing Charlotte May QC for the Applicant, Jessie Bowhill, Counsel for the Respondent, Adrian Speck QC for the Defendants, Kathryn Pickard, Counsel for Generics (UK) Limited (t/a Mylan) and Michael Tappin QC for Teva UK Limited
AND UPON accepting the undertaking in Schedule 3 of this Order
IT IS ORDERED THAT:
1 The Respondent does, no later than 4.00pm on 3 March 2015 take all necessary steps to ensure that guidance in the form of Schedule 1 of this Order ("Pregabalin Guidance") is published to at least the third parties mentioned in Schedule 2 of this Order ("Initial Recipients").
2 For the avoidance of doubt, paragraph 1 is complied with if the Respondent issues the Pregabalin Guidance to the Initial Recipients by email.
3 The Applicant, the Respondent, the Department of Health, the Defendants, Generics (UK) Limited (t/a Mylan), Dr Reddy's Laboratories (UK) Limited and Teva UK Limited and any party affected by the Pregabalin Guidance have liberty to apply in the event that any of them considers that:
(a) the Pregabalin Guidance should be varied or set aside; or
(b) it is necessary and proportionate to publish the Pregabalin Guidance to any third parties besides those mentioned in Schedule 2 of this Order.
4 Any application under paragraph 3 of this Order must be supported by evidence and be made on at least 3 clear days' notice to the other party or parties to the Application.
5 Subject to any further Order that the Court may make, paragraph 1 of this Order will cease to have effect in the event that European Patent (UK) No 0 934 061 is revoked and that revocation order is final or not stayed, or expires.
6 If the Court orders European Patent (UK) No 0 934 061 to be revoked and that order is not stayed, the Respondent will, within 2 working days of receiving written notification of the same from the Applicant, the Defendant and/or any interested party, take all necessary steps to ensure that guidance in the form of Schedule 4 of this Order is published to at least the Initial Recipients (for which purpose paragraph 2 applies).
7 If the Respondent has not been notified pursuant to paragraph 6 by 16 June 2017, it will take all necessary steps to ensure that guidance in the form of Schedule 5 of this Order is published to at least the Initial Recipients on or before 21 June 2017 (for which purpose paragraph 2 applies).
8 The Applicant will pay to the Respondent its reasonable and proportionate costs of implementing the measures ordered in paragraphs 1, 6 and 7 of this Order.
9 The Applicant will pay the Respondent its costs of the Application, such costs being summarily assessed in the sum of £17,044.65, within 14 days of the date of this order.
10 The Applicant will pay the costs incurred by the Defendants and Teva UK Limited in respect of the hearing of this Application, to be assessed on the standard basis if not agreed. Any other costs incurred by the Defendants in respect of this Application shall be costs in the case. Any other costs incurred by Teva UK Limited in respect of this Application shall be costs in the case in Claim No HP-2015-000006.
11 This Order must be served by the Applicant upon the Respondent, and upon the Defendants, Teva UK Limited, Generics (UK) Limited (t/a Mylan) and Dr Reddy's Laboratories (UK) Limited.
Schedule 1: The Pregabalin Guidance
To CCGs: The following notice should be distributed to all GP practices which are members of your CCG on or before Friday 6 March 2015.
To NHS Business Services Authority: The following notice should be distributed to all community pharmacies on or before Friday 6 March 2015:
Dear Colleague
Warner-Lambert Company LLC is engaged in a dispute with a number of generic pharmaceutical suppliers regarding pregabalin, which remains on patent for one indication, namely, the treatment of pain. As part of that dispute, the Court has required NHS England to issue this guidance. Our guidance is that, because of Warner-Lambert's patent rights:
1. Pregabalin should only be prescribed for the treatment of neuropathic pain under the brand name Lyrica® (unless there are clinical contra-indications or other special clinical needs e.g. patient allergic to an excipient, branded product unavailable etc which apply to Lyrica®, when you should not prescribe Lyrica® or pregabalin)
2. When prescribing pregabalin for the treatment of neuropathic pain to patients you should (so far as reasonably possible):
a. prescribe by reference to the brand name Lyrica®; and
b. write the prescription with only the brand name "Lyrica", and not the generic name pregabalin or any other generic brand.
3. When prescribing pregabalin for the treatment of anything other than pain, you should continue to prescribe by reference to the generic name pregabalin.
4. When dispensing pregabalin, if you have been told that it is for the treatment of pain, you should ensure, so far as reasonably possible, that only Lyrica®, the branded form of pregabalin, is dispensed. However, when dispensing pregabalin for the treatment of anything other than pain, you are not restricted to dispensing Lyrica®.
To ensure that practitioners are readily able to recall and follow the guidance above, you should consider amending the operation of any electronic prescription system that is within your power or control to include a notice or advice box which uses the following or similar wording:
"If treating neuropathic pain, prescribe Lyrica (brand) due to patent protection. For all other indications, prescribe generically."
We will let you know should this position change. If you have any questions in relation to the prescription of Lyrica® or pregabalin, please contact Dr David Geddes, Head of Primary Care Commissioning, NHS England, Quarry House, Quarry Hill, Leeds, LS2 7UE.
Yours sincerely
NHS England
Schedule 2: Initial Recipients
1 All Clinical Commissioning Groups in the territory of England.
2 NHS Business Services Authority.
Schedule 3: Undertaking
Undertaking given to the Court by the Applicant
If the Court later finds that this Order has caused loss to the Respondent, the Department of Health, the Actavis group of companies, the Teva group of companies or the Dr Reddy's group of companies, and decides that the Respondent, Department of Health, the Actavis group of companies, the Teva group of companies or Dr Reddy's Laboratories (UK) Limited should be compensated for that loss, the Applicant will comply with any Order the Court may make.
For the purposes of this Undertaking:
(a) "the Actavis group of companies" shall mean Actavis plc and its direct or indirect subsidiaries;
(b) "the Teva group of companies" shall mean Teva Pharmaceuticals Industries Ltd and its direct or indirect subsidiaries.
Schedule 4
To CCGs: The following notice should be distributed to all GP practices which are members of your CCG on or before [insert date 3 working days after issuance of guidance].
To NHS Business Services Authority: The following notice should be distributed to all community pharmacies on or before [insert date 3 working days after issuance of guidance] :
Dear Colleague
We issued guidance in relation to prescribing and dispensing pregabalin on [ ] March 2015 pursuant to a patent dispute between Warner-Lambert Company LLC and a number of generic pharmaceutical suppliers. That guidance is now withdrawn and replaced with the following guidance which the Court has required NHS England to issue. This replacement guidance comes into force immediately:
When prescribing pregabalin for the treatment of any condition, you should prescribe in accordance with your normal practice.
When dispensing pregabalin for the treatment of any condition, you should dispense in accordance with your normal practice.
In our guidance of [ ] March 2015 we asked you to consider amending the operation of any electronic prescription system that is within your power or control to ensure that practitioners were able readily able to follow that guidance. If you made such an amendment, we now ask you to reverse it to reflect the revised guidance above.
If you have any questions in relation to the prescription or dispensing of pregabalin, please contact Dr David Geddes, Head of Primary Care Commissioning, NHS England, Quarry House, Quarry Hill, Leeds, LS2 7UE.
Yours sincerely
NHS England
Schedule 5
To CCGs: The following notice should be distributed to all GP practices which are members of your CCG on or before [insert date 3 working days after issuance of guidance].
To NHS Business Services Authority: The following notice should be distributed to all community pharmacies on or before [insert date 3 working days after issuance of guidance] :
Dear Colleague
We issued guidance in relation to prescribing and dispensing pregabalin on [ ] March 2015 pursuant to a patent dispute between Warner-Lambert Company LLC and a number of generic pharmaceutical suppliers. That guidance is now withdrawn and replaced with the following guidance which the Court has required NHS England to issue. This replacement guidance comes into force on 17 July 2017:
When prescribing pregabalin for the treatment of any condition, you should prescribe in accordance with your normal practice.
When dispensing pregabalin for the treatment of any condition, you should dispense in accordance with your normal practice.
In our guidance of [ ] March 2015 we asked you to consider amending the operation of any electronic prescription system that is within your power or control to ensure that practitioners were able readily able to follow that guidance. If you made such an amendment, we now ask you to reverse it to reflect the revised guidance above as from 17 July 2017.
If you have any questions in relation to the prescription or dispensing of pregabalin, please contact Dr David Geddes, Head of Primary Care Commissioning, NHS England, Quarry House, Quarry Hill, Leeds, LS2 7UE.
Yours sincerely
NHS England