Canada Health backs down on buying Cipro from generics firms

Following the anthrax terrorist activities in the USA, thepharmaceutical industry looked set for an intellectual property fight, when Health Canada announced it would start to stockpile the most potent antibiotic that is approved to treat anthrax poisoning, Cipro (ciprofloxacin), from the domestic generic drug producer Apotex, thus overriding Bayer's patent.

At that time, US officials also indicated that they had the right to acquire generic Cipro in view of the situation. However, despite pressure from some congressmen, President George W Bush stated that he did not believe there was a need to infringe Bayer's patent. Also, Bayer had offered to donate 2 million Cipro tablets for federal and civic authorities, dedicated to emergency personnel who respond to calls of potential anthrax exposure.

Bayer fought back, saying that even in an emergency, which Health Canada claimed this was, under the Patent Act the agency must inform Canada's Patent Commissioner before it overrides an existing patent, and this was not done. The company had already started to scale up production and committed itself to supplying 200 million Cipro tablets over three months (Marketletter October 22), as well as saying it would not increase prices so long as the terrorist activities continued.