Canada Closes Door To Consumer Class Actions Based On Invalidated Pharma Patents

Following a landmark decision from the Supreme Court of Canada in 2012, the Federal Court of Appeal invalidated the Pfizer patent to the active ingredient in Viagra.¹ Subsequently, a class action was initiated in the Supreme Court of British Columbia alleging that Pfizer had injured consumers who had purchased Viagra at inflated prices, because the invalid patent had kept generic competitors off the market.

The parties agreed to bifurcate the certification process, with the result that the Supreme Court of British Columbia was asked initially to determine whether the cause of action requirement for certification was met. The Court held in first instance that the claim disclosed a cause of action. Pfizer appealed the decision.