IN THE MATTER OF the Patent Act R.S.C. 1985, c. P-4, as amended AND IN THE MATTER OF Galderma Canada Inc. (the “Respondent”) and the medicine “Tactuo”

NOTICE OF HEARING

TAKE NOTICE that the Patented Medicine Prices Review Board (the “Board”) will hold a hearing in its offices in the Standard Life Centre, 333 Laurier Avenue West, 18th Floor, Ottawa, Ontario, on a date to be determined by the Hearing Panel on November 13, 2012, or shortly thereafter.

A. Purpose of the Hearing

1. The purpose of the hearing is to determine whether, under sections 83 and 85 of the Patent Act (the “Act”), the Respondent is selling or has sold the medicine known as Tactuo in any market in Canada at a price that, in the Board's opinion, is or was excessive and if so, what order, if any, should be made.

B. Power of Board With Respect to Excessive Prices

2. In the event that the Board finds that the Respondent is selling Tactuo in any market in Canada at a price that, in the Board's opinion, is excessive, the Board may, by order, direct the Respondent to cause the maximum price at which the Respondent sells Tactuo in that market to be reduced to such level as the Board considers not to be excessive and as is specified in the order.

3. In addition, in the event that the Board finds that the Respondent has, while a patentee, sold Tactuo in any market in Canada at a price that, in the Board's opinion was excessive, the Board may, by order, direct the Respondent to do any one or more of the following things as will, in the Board's opinion, offset the amount of the excess revenue determined by it to have been derived by the Respondent from the sale of Tactu

a) reduce the price at which the Respondent sells the medicine in any market in Canada, to such extent and for such period as is specified in the order;

b) reduce the price at which the Respondent sells one other medicine to which a patented invention of the Respondent pertains in any market in Canada, to such extent and for such period as is specified in the order;

c) pay to Her Majesty in right of Canada an amount specified in the order.

4. In addition, in the event that the Board, having regard to the extent and duration of the sales of Tactuo at an excessive price, is of the opinion that the Respondent has engaged in a policy of selling Tactuo at an excessive price, the Board may, by order, in lieu of any order it may make pursuant to paragraph 3 hereof, direct the Respondent to do any one or more of the things referred to in that paragraph as will, in the Board's opinion, offset not more than twice the amount of excess revenue estimated by it to have been derived by the Respondent from the sale of Tactuo at an excessive price.

C. Grounds for the Proposed Orders and the Material Facts

5. Board Staff has conducted an investigation into the price of Tactuo (Drug Identification Number (“DIN”) 02365871, a patented medicine currently sold in Canada by the Respondent. Tactuo is sold in Canada in a 60g tube. The material facts relied upon by Board Staff for the purpose of the Notice of Hearing and the order sought from the Board are described in the Statement of Allegations of Board Staff dated September 24, 2012, a copy of which is attached.

D. Procedure

6. The Board has a public interest mandate to conduct its hearings as expeditiously as fairness permits. The Board will conduct this proceeding in accordance with the proposed Patented Medicine Prices Review Board Rules (the "Rules"), as published in Canada Gazette, Part I, on June 16, 2012, unless otherwise provided in this Notice of Hearing or in any subsequent communication from the Board.

7. The Board will conduct the hearing in public unless the Board is satisfied on representations made and evidence filed by the Respondent that specific, direct and substantial harm would be caused to the Respondent by the disclosure of information or documents at a public hearing, in which case the hearing or any part thereof may, at the discretion of the Board, be held in private.

E. Case Management Conference

8. A Case Management Conference will be held with Counsel and the Secretary of the Board on or before November 13, 2012, in accordance with section 22 of the Rules, for the purpose of

  1. fixing the hearing schedule;
  2. establishing the official language the parties wish to use during the proceeding;
  3. discussing the filing of evidence by the parties;
  4. considering the procedure to be followed and means of expediting the hearing, including determining whether written submissions will be submitted;
  5. determining the expected duration of the hearing;
  6. facilitating the exchange among the parties of information and documents to be submitted at the hearing; and
  7. identifying other issues to be resolved.

9. Witnesses are to be ready to testify throughout the days that will be set out for evidentiary matters, standing by where required in order to avoid delays or unutilized scheduled time.

10. Parties are required to file four (4) paper copies of documents. If a document is filed electronically, the four (4) paper copies must be filed with the Secretary of the Board within 48 hours of electronic filing. In addition, electronic documents must be filed as Portable Document Format (PDF) or in any format authorized by the Secretary, in accordance with section 14 of the Rules.

F. Notice of Appearance

11. Parties are to advise the Secretary of the Board, in writing (by e-mail or fax) and other parties of their legal representation no later October 10, 2012.

G. Response

12. If the Respondent wishes to oppose the proposed order set out in the Statement of Allegations, the Respondent shall, no later than October 17, 2012, file with the Secretary of the Board and serve upon all other parties, in accordance with section 18 of the Rules, a response dated and signed by the Respondent. Take notice that if the Respondent has not filed a response by October 17, 2012, or within such longer period as the Board may by order provide, the Board may make any finding and issue any order pursuant to section 83 of the Act as it deems appropriate.

13. The Respondent should note that the Response constitutes a relatively general statement of the Respondent's position.

H. Reply

14. If Board Staff wishes to reply to the Response, Board Staff shall, no later than November 6, 2012, file with the Secretary of the Board and serve its reply upon the Respondent and all other parties.

I. Intervention

15. Ministers referred to in subsection 86(2) of the Act ("Ministers"), who intend to appear and make representations before the Board shall, in accordance with section 21 of the Rules, file with the Secretary of the Board and serve on all parties a notice of appearance, dated and signed by the said Ministers, on or before October 17, 2012.

16. Any person, other than the Respondent and the Ministers, who claims an interest in the subject matter of this proceeding, may make a motion to the Board, in accordance with section 20 of the Rules, for leave to intervene in the proceeding.

J. Confidentiality Requests

17. Subsection 86(1) of the Patent Act provides that "A hearing under section 83 shall be held in public unless the Board is satisfied on representations made by the person to whom the hearing relates that specific, direct and substantial harm would be caused to the person by the disclosure of information or documents at a public hearing, in which case the hearing or any part thereof may, at the discretion of the Board, be held in private."

18. Any claim for confidentiality, made in connection with a document filed with the Board or requested by the Board or any party, shall be filed with the Secretary of the Board and served on all parties and accompanied by the reasons thereof. Where it is asserted that specific, direct and substantial harm would be caused to the party claiming confidentiality, the party's claim shall contain sufficient details as to explain fully the nature and extent of such harm.

19. A party claiming confidentiality in connection with a document shall indicate whether the party objects to providing an abridged version of the document to other parties and, if so, shall state the party's reasons for the objection.

K. List of Supporting Documents

Statement of Allegations of Board Staff dated September 24, 2012, and attachments
Patent Act (sections 79 to 103)
Patented Medicines Regulations
Patented Medicine Prices Review Board Rules (Proposed), as published in Canada Gazette, Part I, June 16, 2012
Compendium of Policies, Guidelines and Procedures


DATED at Ottawa, this September 26, 2012

___________________________________

Sylvie Dupont
Secretary of the Board
All information requests and/or correspondence should be addressed t

The Secretary of the Patented Medicine Prices Review Board
Standard Life Centre
333 Laurier Avenue West
Suite 1400
Ottawa, Ontario
K1P 1C1

Toll-free number: 1-877-861-2350
Direct line: (613) 954-8299
Fax: (613) 952-7626
E-mail: sylvie.dupont@pmprb-cepmb.gc.ca

TO: RESPONDENT

Ms. Wendy Adams
General Manager
Galderma Canada Inc.
105 Commerce Valley Drive West
Suite 300
Thornhill, Ontario
L3T 7W3

AND TO: MINISTERS

AND TO: The Honourable Christian Paradis, P.C., M.P.
Minister of Industry
235 Queen Street
11th floor
Ottawa, Ontario
K1A 0H5

AND TO: The Ministers responsible for health in each province and territory:

The Honourable Margaret MacDiarmid, M.L.A.
Minister of Health
Province of British Columbia
Room 337, Parliament Buildings
Victoria, British Columbia
V8V 1X4

The Honourable Fred Horne, M.L.A.
Minister of Health
Province of Alberta
208 Legislature Building
10800-97 Avenue
Edmonton, Alberta
T5K 2B6

The Honourable Dustin Duncan, M.L.A.
Minister of Health
Province of Saskatchewan
Room 204, Legislative Building
Regina, Saskatchewan
S4S 0B3

The Honourable Theresa Oswald, M.L.A.
Minister of Health
Province of Manitoba
Room 302, Legislative Building
450 Broadway
Winnipeg, Manitoba
R3C 0V8

The Honourable Deb Matthews, M.P.P.
Minister of Health and Long-Term Care
Province of Ontario
Queen's Park
Hepburn Block, 10th Floor
80 Grosvenor Street
Toronto, Ontario
M7A 2C4

Monsieur Réjean Hébert
Ministre de la Santé et des Services sociaux
Gouvernement du Québec
Édifice Catherine-de-Longpré
1075, chemin Sainte-Foy, 15e étage
Québec (Québec)
G1S 2M1

The Honourable Madeleine Dubé, M.L.A.
Minister of Health
Province of New Brunswick
5th Floor, Carleton Place
520 King Street, P.O. Box 5100
Fredericton, New Brunswick
E3B 5G8

The Honourable David Wilson, M.L.A.
Minister of Health
Province of Nova Scotia
4th Floor, Joseph Howe Building
1690 Hollis Street, P.O. Box 488
Halifax, Nova Scotia
B3J 2R8

The Honourable Doug Currie, M.L.A.
Minister of Health and Social Services
Province of Prince Edward Island
105 Rochford Street
Charlottetown, P.E.I.
C1A 7N8

The Honourable Susan Sullivan, M.H.A.
Minister of Health and Community Services
Government of Newfoundland and Labrador
Confederation Building, West Block
Prince Philip Drive, P.O. Box 8700
St. John's, Newfoundland and Labrador
A1B 4J6

The Honourable Doug Graham, M.L.A.
Minister of Health and Social Services
Government of Yukon Territory
2071 - 2nd Avenue, P.O. Box 2703
Yukon Government Administration Building
Main Floor
Whitehorse, Yukon
Y1A 2C6

The Honourable Tom Beaulieu, M.L.A.
Minister of Health and Social Services
Government of the Northwest Territories
Legislative Assembly, P.O. Box 1320
Yellowknife, NWT
X1A 2L9

The Honourable Keith Peterson, M.L.A.
Minister of Health and Social Services
Government of Nunavut
P.O. Box 2410
Iqaluit, Nunavut
X0A 0H0

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