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Volume 3, Number 22 - October 26, 2001
Canada To Buy Bayer's Cipro

 

   After an uproar over alleged patent infringement, Canada will buy the anti-anthrax drug Cipro from Bayer Corp., officials of the pharmaceutical giant said.

   "We have agreed to supply 1 million tablets within 48 hours of a request," said Doug Grant, Bayer's vice-president of public policy and communications, during a telephone news conference.
 
   Under an agreement reached late Monday, Bayer will be the only Cipro supplier for Canada's health ministry, said Neil Belmore, a Bayer patent lawyer. In return, the company will not sue the Canadian government, he said.

   The country also will give Bayer 1 million tablets of generic ciprofloxacin, made by Toronto's Apotex Inc., on request from the health ministry. The stockpile will not be used, Belmore said, unless anthrax infection becomes so widespread in Canada supplies of brand-name Cipro are exhausted.
 
   Bayer and the Canadian Health Ministry had been at odds over whether the company could meet the country's Cipro needs. The row erupted last week, after health ministry officials, unsure of Bayer's capabilities, asked Apotex to produce the generic Cipro.
 
   Grant said Bayer was never asked to supply 1 million tablets of the drug, although he said two earlier orders from the health ministry were accepted and filled.
 
   "We got no call from Health Canada for the order that was placed with Apotex," he said.
 
   Pressed to be more specific, Grant said the company was not called about the order, did not get a formal order and never "indicated" to Health Canada there might be a problem fulfilling such a large order. Grant would not comment on health ministry allegations of production shortfalls.
 
   Bayer officials said last Friday the Apotex deal infringed its patent on the drug. Legal action against the government has been ruled out, Belmore said, but the company still could take Apotex to court.
  
   Apotex president Jack Kay said the threat of legal action is "nothing new. I've been in litigation with Bayer on Cipro since 1996." 
 
   Apotex's generic version of the drug has passed all regulatory steps, Kay said, but has not been approved for sale, since under Canadian patent law, approval can be stalled by a legal challenge over patents. 
 
   Kay said he expects to be paid $1.5 million Canadian or about $954,000 for the generic drugs, which will be delivered to the Canadian health ministry by Nov. 8 and then turned over to Bayer for storage as part of Monday's agreement.

   Grant said Ottawa will pay the going wholesale price for Cipro tablets, but only when the pills are actually delivered. He refused to name a figure, but the current price for a Cipro tablet is about $2 Canadian, or $1.30 U.S.
 
   Ciprofloxacin is the antibiotic believed to be most effective against inhalation anthrax, but other medications, including penicillin and doxycycline, can also treat the disease.
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Copyright 2001 by United Press International.
All rights reserved.
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