Commonwealth of Australia v Sanofi (formerly Sanofi-Aventis) [2023] FCAFC 97

FEDERAL COURT OF AUSTRALIA

Commonwealth of Australia v Sanofi (formerly Sanofi-Aventis) [2023] FCAFC 97 Appeal from: Commonwealth of Australia v Sanofi (formerly Sanofi-Aventis) (No 5) [2020] FCA 543

File number: NSD 586 of 2020

Judgment of: BESANKO, PERRAM AND YATES JJ

Date of judgment: 26 June 2023

Catchwords: PATENTS – where listing of generic drug on Pharmaceutical Benefits Scheme ('PBS') reduces listing price and Commonwealth subsidy of non-generic form of drug – where Respondent held patent for clopidogrel – where interlocutory injunction obtained restraining generic supplier from entering market with generic clopidogrel – where generic supplier undertook not to seek PBS listing – where Respondent undertook to compensate persons adversely affected by injunction – where Respondent's patent subsequently found invalid – where Commonwealth seeks recovery of additional subsidies provided to Respondent due to non-listing of generic clopidogrel – where Respondent's patent subsequently found invalid – whether generic supplier would have sought PBS listing if injunction not granted – whether trial judge overlooked material evidence – whether trial judge incorrectly drew Jones v Dunkel inference against Commonwealth – whether delay in delivering judgment more readily establishes error in trial judge's reasons concerning credit of witness and overlooked evidence – whether Commonwealth's claimed loss flows directly from injunction

Legislation: National Health Act 1953 (Cth) ss 99AEB, 99AEH(2) Trade Practices Act 1974 (Cth) ss 52, 82

Cases cited: AIB Group (UK) plc v Mark Redler & Co Solicitors [2015] AC 1503 Air Express Ltd v Ansett Transport Industries (Operations) Pty Ltd (1981) 146 CLR 249 Australian Securities and Investments Commission v Hellicar [2012] HCA 17; 247 CLR 345 Berry v CCL Secure Pty Ltd [2020] HCA 27; 271 CLR 151 Commonwealth of Australia v Sanofi (formerly Sanofi-Aventis) (No 5) [2020] FCA 543 Coshott v Principal Strategic Options Pty Ltd [2004] FCAFC 50 Douglass v Bullen (1913) 12 DLR 652 European Bank Ltd v Evans [2010] HCA 6; 240 CLR 432 Ex parte Hall, in re Wood (1883) 23 Ch D 644 Expectation Pty Ltd v PRD Realty Pty Ltd [2004] FCAFC 189; 140 FCR 17 GenRx Pty Ltd v Sanofi-Aventis [2007] FCA 1485 HTW Valuers (Central Qld) Pty Ltd v Astonland Pty Ltd [2004] HCA 54; 217 CLR 640 Jones v Dunkel (1959) 101 CLR 298 Palmer Bruyn & Parker v Parsons [2001] HCA 69; 208 CLR 388 Purkess v Crittenden (1965) 114 CLR 164 Re an Arbitration between Pemberton and Cooper (1912) 107 LT 716 Schlesinger v Bedford (1893) 9 TLR 370 (CA) Sellars v Adelaide Petroleum NL (1994) 179 CLR 332 Sigma Pharmaceuticals (Australia) Pty Ltd v Wyeth [2018] FCA 1556; 136 IPR 8 Smith New Court Securities Ltd v Citibank NA [1997] AC 254 Smith v Day (1882) 21 Ch D 421 Specsavers Pty Ltd v The Optical Superstore Pty Ltd (No 3) [2012] FCA504; 290 ALR 263 Warner-Lambert Company LLC v Apotex Pty Ltd [2017] FCAFC 58; 249 FCR 17 Wyzenbeek v Australasian Marine Imports Pty Ltd [2019] FCAFC 167; 272 FCR 373