On September 18, 2007 the PMPRB announced that it has issued its final order in the matter of a hearing into the price of the medicine DOVOBET which is sold in Canada by LEO Pharma Inc. The proceedings commenced in November 2004 and the Board issued a decision in April, 2006. Subsequently, on judicial review, the Federal Court upheld parts of the Board's decision but overturned its conclusions with respect to the treatment of free goods supplied by LEO Pharma in the calculation of the price for PMPRB review purposes. In issuing its final Order, which takes into account the Federal Court decision, the Board established new maximum non-excessive prices for DOVOBET and ordered LEO Pharma to make a payment to the Government of Canada of approximately $3.7 million.

On September 26, the Board also announced that it has concluded another proceeding which had commenced in July of this year with respect to the price of ZEMPLAR IV sold in Canada by Abbott Laboratories, Inc. In this case, the Board accepted a Voluntary Compliance Undertaking by Abbott with respect to the price of ZEMPLAR IV and its undertaking to make payments to Canadian hospitals of approximately $58,000.00.

For more information, please visit:

 http://www.gowlings.com/resources/enewsletters/DrugPricingReimbursement/Htmfiles/V1N16_20070927.en.html

 http://www.gowlings.com/resources/enewsletters/DrugPricingReimbursement/Htmfiles/V1N15_20070921.en.html