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High Court of Ireland Decisions |
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You are here: BAILII >> Databases >> High Court of Ireland Decisions >> Genmark Pharma Ltd. v. Minister for Health [1997] IEHC 121; [1998] 3 IR 111 (11th July, 1997) URL: http://www.bailii.org/ie/cases/IEHC/1997/121.html Cite as: [1997] IEHC 121, [1998] 3 IR 111 |
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1. This
is an Application for Judicial Review by way of Certiorari quashing a decision
of the Minister of State at the Department of Health dated the 20th May, 1994
under powers delegated to him by the Minister for Health, which refused an
application for product authorisation for a drug known as Edelfonsine. The
power was delegated under the Health (Delegation of Ministerial Function)
Order, S.I. No. 62 of 1993. No point is taken in relation to this delegation.
References to "the Minister" include the Minister for Health or the Minister
for State (as the case may be). The Applicant, Genmark Pharma Limited
("Genmark"), also seeks declarations that the Minister failed properly to apply
EC Directives 65/65 (as amended) and 75/318 (as amended) as also Statutory
Instrument No. 210 of 1984, being the Medical Preparations (Licensing
Advertisement and Sale) Regulations 1984.
2. EC
Directive 65/65 (as amended) provided in Article 3 that no medicinal product
could be placed on the market of a member state unless a marketing
authorisation had been issued by the competent authority of that member State
in accordance with the relevant procedures. Article 5 provided that an
authorisation should be refused if (inter alia):-
3. There
is provision under Article 7 that the procedure should be completed within 120
days of the date of application. In certain circumstances this could be
extended for a further 90 days.
4. Where
an application is refused, Article 12 provides that the decision should be
notified to the party concerned stating in detail the reasons on which it was
based and at the same time the party shall be informed of the remedies
available under the law in force and the time limit allowed for the exercise of
those remedies. Article 21 provides that an authorisation to market a
medicinal product shall not be refused, suspended or revoked except on the
grounds set out in the directive.
The
statutory instrument implementing Directive 65/65 (as amended) is the Medical
Preparations (Licensing, Advertisement and Sale) Regulations, 1984, S.I. 210 of
1984 ("the 1984 Regulations"). Under those regulations medical preparations
could only be sold or manufactured if licensed for that purpose under the
regulations by the Minister (Article 4). This is referred to as "product
authorisation".
5. The
Minister was designated the competent authority for the grant of product
authorisations. Article 7 of the 1984 Regulations provides:-
8. Directive
65/65 was amended by Directive 75/318 and 91/507. Among the recitals to
Directive 75/318 it is stated:-
12. Part
4, Section G is headed 'Documentation for Applications in exceptional
circumstances'. It provides that when in respect of particular therapeutic
indications, the applicant can show that he is unable to provide comprehensive
data on the quality, efficacy and safety under normal conditions of use because
(inter alia) it would be contrary to generally accepted principles of medical
ethics to collect such information, marketing authorisation might be granted
subject to certain conditions.
13. The
medical product concerned in this case is Edelfonsine. It is intended for use
in cases of inoperable small cell lung cancer. Dr. Rabbe Nordstroem who swore
the grounding affidavit says that it is an anti neoplastic agent unlike
chemotherapy drugs which operate to destroy the neoplastic cells. Edelphonsine
operates to induce cells to terminal proliferation or to inability to
proliferate. It was invented by scientists of the Max Planck Society in
Germany and a German company, Medmark Pharma GmBh. was licensed to develop and
exploit the invention in 1987.
14. Genmark
is an associated company of Medmark Pharma and plans to manufacture the drug in
Ireland if permitted. Doctor Nordstroem sets out claims for the efficacy of
the drug but the Court is not concerned with the question of efficacy. It is
only concerned with the validity of the decision making process.
15. The
application for product authorisation for Edelfonsine was made by Waterford
Clinical Associates Limited (t.a. Shandon Clinic) on the 7th March, 1991 to the
Secretary of the Department of Health. In the application form the company is
stated to be the "product authorisation holder".
16. This
was acknowledged on the 7th March, 1991 and the company was told that the
application would be processed in consultation with the National Drugs Advisory
Board ("the NDAB"). It was therefore necessary to furnish the NDAB with such
information and facilities as they might require in the course of examination
of the application for the purpose of advising the Minister.
17. The
application comprised 45 volumes of text in German. Doctor Teeling of the NDAB
wrote to Professor Cleary of Shandon Clinic on the 5th February, 1992 to say
that dossier had been found to be impossible to assess and asking the company
to resubmit the application taking the CPMP (Committee for Proprietary
Medicinal Products) guidelines into account. He was asked if it was intended
to undertake phase III clinical trials. Professor Cleary replied on the 10th
February, 1992 requesting a meeting between Doctor Teeling and the Clinical
Research Director of the sponsoring company. On the 11th February, 1992 Doctor
Teeling said that until the dossier was in the standard form it would be
impossible to assess the product and asked for an amended dossier using the
standard headings outlined in the enclosed guidelines in order to proceed with
assessing it. If considered necessary after initial assessment, Doctor Teeling
said a meeting could be arranged.
18. Doctor
Nordstroem says in his grounding affidavit that subsequent to this Genmark took
over the conduct of the application. On 20th May 1992 it lodged 16 books in
English. On the 21st September, 1992 Doctor Nordstroem wrote to Doctor Teeling
enclosing the analysis of an ongoing clinical study with the drug and asked
that marketing approval would be granted as soon as possible.
20. The
correspondence was then taken over by Genmark's solicitors who wrote to Doctor
Teeling on the 6th May, 1993 enclosing a formal response by Dr. Nordstroem
dated 5th May, 1993 to the issues raised by the letter of the 7th April. The
solicitors said that the response required to be considered in conjunction with
the original detailed application and requested that any additional queries
should be directed to them. The formal response of Doctor Nordstroem disagreed
with the statement that the data was inadequate and set out reasons in an eight
page letter together with enclosures. A further audit report by Professor
Murphy of University College Cork dated the 5th July, 1993 was forwarded by
Genmark's solicitors on the 15th July, 1993 for the attention of the members of
the NDAB.
21. On
the 3rd August, 1993 the acting secretary of the NDAB wrote to Genmark's
solicitors to say the supplementary data had been reviewed by the Board's
Committees and he was directed by the Board to inform him that it upheld its
original decision to recommend the rejection of the application.
22. Genmark's
solicitors replied on the 18th August, 1993 requesting the Board to indicate in
detail in writing the reasons the product had been rejected. They requested
that the Board would nominate some person with whom their clients could liaise
for the purposes of discussing the Board's requirements. They also asked for a
list of the members of the Board with details of their professional
qualifications and experience in the subject area. They further asked if the
Board received advise from any outside sources to confirm the position,
indicating the source of that advice.
23. The
acting secretary of the NDAB replied on the 20th August, 1993 saying the
reasons for recommending the rejection of the application were contained in
Doctor Teeling's letter to the company on the 7th April, 1993 and he enclosed a
copy. He added that the company could still withdraw its application at that
stage prior to formal rejection.
24. On
the 24th August, 1993 Genmark's solicitors enquired from the secretary of the
NDAB whether the decision could be appealed in any way and within what time
frame and also asked for a reply to the letter of 18th August. The acting
secretary wrote on the 6th September, 1993 to say the matter was discussed by
the Committee on Drug Usage and Adverse Reactions at its meeting on the 2nd
September, 1993 and it was recommended that it be brought to the Board for
further consideration at its meeting on the 7th October, 1993.
25. On
the 4th October, 1993 Genmark's solicitors enclosed a further document entitled
"Edelfonsine - Summary", for circulation to the Board members for the meeting
on the 7th October, 1993.
26. On
the 15th October, 1993 the acting secretary wrote to Genmark's solicitors to
say the Board had considered the additional information at its recent meeting
and the application was not approved because of the absence of adequate
efficacy data i.e. randomised clinical trials. He said that it was intended
that the application would be formally rejected at the December meeting of the
Board. Alternatively, they could withdraw the application and resubmit when
appropriate efficacy data were available.
27. On
the 24th November, 1993 Genmark's solicitors wrote to say their client's
position and proven experience was that randomised clinical trials were neither
appropriate nor permissible in the case of Edelfonsine. They enclosed a
detailed memorandum explaining their client's position and containing proposals
to enable the application to proceed for circulation to the Board members. On
the 22nd December, 1993 Genmark's solicitors were notified by the acting
secretary of the NDAB that the matter was reviewed by the Board at its meeting
on the 2nd December, 1993 and it recommended the rejection of the application
on grounds of inadequate evidence of efficacy. He said the Board's
recommendation was being communicated to the Minister for Health. This was
done by letter to the Minister dated 23rd December 1993 saying a detailed
letter specifying the grounds for recommending rejection would be sent shortly.
28. Genmark's
solicitors replied to the NDAB on the 6th January, 1994 and said in the
circumstances they insisted on a reply to their letter of the 18th August,
1993. Genmark's solicitors wrote to the Minister for Health on the 6th
January, 1994 criticising the Board's recommendation. They said the
application fell to be decided by him as Minister and that in order that he
might be fully briefed they enclosed a booklet of correspondence between their
firm and the Board. They claimed the documentation would justify him in either
granting the product authorisation or at the very least in instructing the
Board to reconsider the matter in accordance with the EC legislation and
guidelines. The receipt of this letter was acknowledged on 7th January, 1994.
29. On
the 7th January, 1994 the secretary of the NDAB wrote to the secretary of the
Department of Health concerning the application. This letter was not seen by
Genmark until after discovery was made. It was in the following terms:-
30. The
matter was submitted to the Minister for decision by Minute dated 20th January,
1994. The matter was then resubmitted on 3rd February, 1994 to the Minister
for State at the Department of Health to whom the power to make a decision
under the regulations had been delegated. As already stated no point arises in
respect of this delegation.
31. On
the 23rd February, 1994 the Minister for State wrote to Waterford Clinical
Associates Limited (trading as Shandon Clinic) saying:-
32. A
copy of this letter was sent to the NDAB on 14th March, 1994. Genmark's
solicitors replied to the letter of 23rd February, 1994 on the 9th March, 1994
saying:-
34. In
writing on 24th March, 1994 to arrange the meeting, Genmark's solicitors asked
the CEO of the NDAB if he would confirm that the NDAB would at least in
principle be prepared to reconsider its advice to the Minister on foot of what
transpired at the meeting. They also asked for copies of all communications
between the NDAB and the Minister in respect of the product Edelfonsine.
35. The
CEO replied on the 7th April, 1994 saying that as the Board had made its
recommendation to the Minister following an exhaustive review of all data
submitted, reconsideration of the advice to the Minister would not be possible.
He also pointed out that correspondence between the Board and the Minister
could not be provided and said they would have received any relevant
correspondence in the course of the evaluation of the application. He said
that in the course of the meeting they could confirm the reasons for their
recommendations to the Minister.
36. On
the 27th April, 1994 Genmark's solicitors wrote to the Minister for State at
the Department of Health referring to the meeting between the CEO and the
secretary of the NDAB and their clients on the 18th April. At the meeting the
CEO of the NDAB outlined the procedures adopted in evaluating the application
and making its recommendation to the Minister. He also said that
correspondence between the NDAB and the Minister could not be provided and that
the Minister would state the reasons for his decision when communicating his
decision to Genmark. The solicitors complained there was no discussion or
debate on the medicinal aspects of the application or on the ethical
consideration affecting clinical trials. They said the Minister was required
to consider not just the advice received but also Genmark's response thereto
and it was necessary for Genmark to be appraised of all communications from the
NDAB so as to enable it to put its response before the Minister. They
complained Genmark had not had any opportunity of putting its case directly to
the Minister. They pointed out that it appeared to Genmark that there had been
a misinterpretation of the EC directives by the NDAB, specifically by
indicating that they required proof of efficacy in the form of randomised phase
III studies which in view of Genmark was erroneous and not in accordance with
Directive 91/507. They asked the Minister to hold a formal hearing to allow
Genmark to put its case and to bring evidence before the Minister of the
benefits of the drug and the difficulties in obtaining phase III studies and to
contest any contrary views that were advanced. They referred back to the
communication with the NDAB the previous August, 1993 and complained that no
one had been appointed with whom they could liaise and that they were not given
information to enable them to assess the professional status and experience of
the evaluators in the NDAB. They submitted that the Minister could not
discharge his duties by accepting the recommendation of the NDAB without giving
Genmark the opportunity of ascertaining the grounds for the recommendation and
contesting the same. This could only be done by full disclosure of all
communications and by holding a ministerial hearing to enable the Minister to
evaluate the grounds for the recommendation of the NDAB.
37. The
request for a ministerial hearing was refused by the Minister of State at the
Department of Health by letter dated the 23rd May, 1994.
38. By
letter of the same date addressed to Waterford Clinical Associates Limited the
company was informed that the Minister for State had made an order refusing
their application of the 7th March, 1991 for product authorisation and
enclosing the order. The order of the Minister for State dated the 20th May,
1994 stated in the operative part as follows:-
39. The
affidavit grounding the statement in opposition was made by John Gillen of the
Department of Health. He said that there was no application for product
authorisation from Genmark. The application was made on the 7th March, 1991 by
Waterford Clinical Associates Limited and the Minister's decision of the 20th
May, 1994 was addressed to that company. He said the application made on the
7th March, 1991 was incomplete and did not comply with EC law. The NDAB was
established by the Minister by S.I. 163 of 1966, the National Drugs Advisory
Board (Establishment) Order, 1966 pursuant to powers conferred on him by the
Health (Corporate Bodies) Act, 1961. Among the functions of the Board is a
general power to consider and report to the Minister on such general or
particular matters in regard to drugs as he may refer to the Board for advice.
In 1987, the NDAB published guidelines on behalf of the Minister in accordance
with his guidelines published in August, 1984 to assist applicants for product
authorisation under the 1984 regulations. They are not themselves regulations.
Mr. Gillen said the Minister received from the NDAB letters dated the 23rd
December, 1993 and the 7th January, 1994 and a substantial volume of
documentation from Genmark's solicitors on the 7th January, 1994. He said it
was following a consideration of this documentation that the Minister wrote to
Waterford Clinical Associates Limited indicating the decision contemplated and
providing further opportunity for contact with NDAB.
40. By
letter dated the 5th July, 1995 it was confirmed to Genmark's solicitors that
the documentation before the Minister were the documents set out at numbers 1
to 14 and 19 to 29 in the first schedule (first part) of the affidavit of
discovery sworn by Mr. Gillen on 3rd July 1995. The documents Nos. 1-14 were
basically correspondence between the NDAB and the Minister, the most important
of which was the letter dated 7th January, 1994 which was not disclosed to
Genmark, and correspondence between Genmark's solicitors, Waterford Clinical
Associates Limited and the Minister and also four minutes to the Minister. The
documents Nos. 19-29 do not appear to have any relevance in the context of this
application.
41. Genmark
says it has "sufficient interest" within the meaning of Order 84 Rule 20(4).
It says the NDAB were notified in 1992 that it was taking over the conduct of
the application. The NDAB and the Minister corresponded with Genmark and the
NDAB acknowledged receipt of an application from Genmark.
42. The
first evidence on this point is the letter of the 10th February, 1992 where Dr.
Leary of Waterford Clinical Associates Limited asked Dr. Teeling of the NDAB if
Dr. Drehsen could visit her in order to fully identify and discuss the
problems. He said she was employed "as Clinical Research Director of the
sponsoring company". Dr. Teeling replied to Dr. Leary on the 11th February,
1992 refusing a meeting for the moment. The next letter is from Dr. Nordstroem
on the 21st September, 1992 to Dr. Teeling on Genmark Pharma note paper headed
"Our application for marketing approval of Edelfonsine from March 7th, 1991"
(which was not correct). On the 7th April, 1993 Dr. Teeling wrote to Dr.
Nordstroem thanking him for his application for product authorisation and
saying the committees of the NDAB recommended rejection. She asked whether the
company wished to withdraw the product. Following this letter correspondence
was taken over by Genmark's solicitors. Ultimately, the NDAB wrote to the
Genmark's solicitors on the 22nd December, 1993 to say it was recommending
rejection. The solicitors then wrote directly to the Minister on the 6th
January, 1994 stating Genmark applied for product authorisation on the 7th
March, 1991 (which was not correct). An acknowledgement on behalf of the
Minister dated the 7th January, 1994 simply repeated the same formula of words
as in the solicitor's letter. When the Minister indicated what his decision
was likely to be in respect of the application by Waterford Clinical Associates
Limited he wrote to that company suggesting a meeting with the NDAB on the 23rd
February, 1994. Genmark's solicitors replied to that letter on the 9th March,
1994 saying Waterford Clinical Associates Limited were no longer involved in
the application which was taken over by Genmark in May 1992. At the meeting
which took place on 18th April, 1994, Dr. Cleary of Waterford Clinical
Associates Limited was present. The Minister ultimately made his decision on
the 7th March, 1991 on the application made by Waterford Clinical Associates
Limited which was communicated to that company on the 23rd May, 1994.
43. It
is extraordinary that when the Minister raised this point, that Genmark did not
immediately furnish proof by way of supplementary affidavit that Waterford
Clinical Associates Limited had either transferred all their rights under the
application to Genmark or that Genmark were processing the Judicial Review
proceedings on its behalf. Alternatively, Waterford Clinical Associates
Limited could have applied to be joined as a co-applicant.
44. The
Minister claims that there is no provision for the assignment of rights under
an application for product authorisation. However, in my opinion, that point
does not fall to be considered here. There is no claim in the statement of
grounds that Genmark are entitled to have authorisation issued to them and not
to the original applicant, Waterford Clinical Associates Limited. The
statement of grounds is based on the incorrect premise that the application for
product authorisation was the application of Genmark. In my opinion, the only
point in relation to this issue is whether Genmark have sufficient interest to
prosecute the Judicial Review proceedings in respect of the decision made on
the application by Waterford Clinical Associates Limited.
45. In
spite of the lack of any documentary proof for Genmark's claim to be entitled
to prosecute this claim, there seems to be no doubt that Waterford Clinical
Associates Limited have acquiesced in Genmark's course of action, even to the
extent that letters to Waterford Clinical Associates Limited from the Minister
were passed to Genmark's solicitor to be replied to by them on behalf of
Genmark. But it is also clear that Waterford Clinical Associates Limited have
not dropped out of the picture as Dr. Cleary attended the meeting with the NDAB
in April 1994.
46. While
the correct approach would appear to have been to join Waterford Clinical
Associates as co-applicants, it would be unreal to hold that Genmark have no
standing because they have not produced direct evidence that they are acting
with the approval of Waterford Clinical Associates Limited. I think the
implication from the evidence that does exist must be that Waterford Clinical
Associates Limited know of and acquiesce in Genmark's actions. Accordingly,
even though the action is not constituted perfectly nevertheless, it seems to
me, that Genmark have demonstrated sufficient interest to prosecute the
Judicial Review proceedings.
47. I
am satisfied that it was the Minister who actually made the decision following
consideration of all the submissions of Genmark. The fact that the Minister
has never departed from the NDAB's recommendations to date is hardly
surprising. The only decisions he had to make to the present, were cases where
the NDAB recommended granting the approval. In other cases where refusal was
going to be recommended the applicants in question withdrew their applications.
Neither of these considerations go to prove that the Minister did not himself
make the decision.
48. Genmark
also alleges that there was an improper delegation of power in that the NDAB
made regulations under the 1984 Regulations which they were not entitled to do.
This allegation is not correct. The NDAB issued guidelines for applications
for authorisations under the 1984 Regulations. They did not make regulations.
49. That
the Respondent was in breach of natural and constitutional justice and in
breach of Directive 65/65 (as amended) and the 1988 Regulations in that he:
50. In
my opinion, while the Minister was entitled to seek advice, he was not entitled
to rely on advice in the form of conclusions without reference to the basic
material on which those conclusions were based. See
Flanagan
-v- University College Dublin
1988 I.R. 724 and
Jeffs
-v- New Zealand Dairy Production and Marketing Board
1967 I AC 551.
51. As
the competent authority the Minister must be in a position to make his own
evaluation of the advice received based on relevant documentation submitted.
This he failed to do. Neither the documentation furnished by Genmark to the
NDAB nor a reasonable summary of it was forwarded to the Minister.
52. The
advice he received did not even deal with a major point made by Genmark relying
on Directive 75/318 Annex Part 4 Sections (F) & (G), namely, that Grade III
clinical trials were neither possible nor necessary. The advice did not say
why the absence of Grade III trials was fatal. While the Minister would be
entitled to make up his own mind on this question whether he received advice on
it or not, he would nevertheless have to give reasons why he rejected Genmark's
arguments.
53. It
seems to me that the advice did not relate specifically to the documentation
so that the Minister could evaluate the advice at the same time as he evaluated
the submissions of Genmark. The Minister should have been sent whatever
documentation was relevant to enable him to evaluate the advice and the
submissions.
54. Genmark
was entitled to know what were the final grounds put forward by the NDAB so
that it could respond to them before the Minister made his decision. It is not
enough to say that Genmark was aware of the main ground i.e. lack of randomised
Phase III clinical trials. It was entitled to be informed of all the grounds
(see
Geraghty
-v- Minister for Local Government
1976 IR 153).
55. The
Minister argued that because Genmark did not at any stage prior to the issue of
proceedings ask the Minister to specify in more detail the reasons for his
refusal, this was a factor to be taken into account in deciding whether the
reasons were specifically stated (see
O'Keeffe
-v- An Bord Pleanala
1993 1 I.R. 39 at 76). In that case the decision in question was a decision of
An Bord Pleanala on appeal granting planning permission subject to conditions.
It was held that the document in question sufficiently identified the reasons
by which the Board reached its decision. In my opinion, that case is not
similar to the present one which requires, according to the Directive, detailed
reasons which were not supplied.
57. It
is abundantly clear that the Minister did not fail to give Genmark an
opportunity to be heard. He received a bulky submission from Genmark's
solicitors on the 6th January, 1994 enclosing documents in order that he might
be fully briefed. On the 27th April, 1994 he had another letter making a
variety of points on behalf of Genmark. The Minister was not obliged to direct
an oral hearing, therefore, failure to hold one does not give rise to any
claim. There was no attempt to close out Genmark from making any submission it
wished to the Minister. There was no right, statutory or otherwise, to have an
oral hearing. The refusal to allow an oral appeal was not a refusal to allow
Genmark to make any points it wished to make. The decision making process was
flawed because information on which the Minister reached his decision was not
available to Genmark and therefore Genmark could not make submissions on that
information. It was not flawed because of a general failure to give Genmark an
opportunity to be heard.
59. In
the circumstances the appropriate Order is an Order of Certiorari quashing the
Minister's Order of 20th May, 1994.