Court of Appeal
Regina (Bayer plc) v NHS Darlington Clinical Commissioning Group and others
Regina (Novartis Pharmaceuticals UK Ltd) v NHS Darlington Clinical Commissioning Group and others
[2020] EWCA Civ 449
2019 Nov 19–22;
2020 March 25
Underhill, Floyd, Rose LJJ
National Health Service Medicinal productsCommissioning policyClinical commissioning groups adopting policy on treatment of eye conditionPolicy recommending use of particular product as preferred option for certain patients Market authorisation for product only covering use for cancer treatment whereas claimants’ rival products having market authorisation specific to opthalmic useProduct recommended in policy used “off-label” by dividing original vials into smaller doses for injection into eyeWhether policy lawfulWhether contrary to European Union law Parliament and Council Directive 2001/83/EC (as amended by Parliament and Council Directive 2004/27/EC, art 1), arts 2(1), 3, 5, 6(1)

The defendant clinical commissioning groups (“CCG”s) adopted a policy on the treatment of age-related macular degeneration which referred to three different drugs for treating patients with the neovascular form of that condition, known as “wet AMD”. In patients suffering from the condition, loss of vision was caused by the abnormal growth of new blood vessels beneath the macula of the retina, stimulated by a protein known as vascular endothelial growth factor (“VEGF”). Each of the three products referred to in the policy was an “anti-VEGF” product which inhibited VEGF when injected into the eye. The first two products were marketed by the first and second claimants respectively and each held a marketing authorisation for opthalmic use, under Parliament and Council Directive 2001/83/EC, issued by the European Commission on the recommendation of the European Medicines Agency. The defendants’ policy indicated that the third product, Avastin, would be offered to certain patients with wet AMD as the preferred treatment option, being considerably cheaper than the other two products. The marketing authorisation for Avastin was for the treatment of cancer, but clinical trials showed that, when used “off-label” for the treatment of wet AMD by injection into the eye, there was no clinically significant difference between Avastin and other anti-VEGF products in terms of safety or effectiveness. When used to treat wet AMD, Avastin was generally “compounded” by dividing up the vials supplied by the manufacturer into smaller doses which were then usually placed into plastic syringes. Guidance issued in August 2011 by the Medicines and Healthcare products Regulatory Agency, an executive body of the Department of Health, advised that such use, involving manipulation of the medicine to produce multiple doses, resulted in an “unlicensed medicine”. The claimants sought judicial review of the policy on the grounds, inter alia, that there was no lawful basis for the supply of Avastin to treat wet AMD and that the policy fundamentally undermined the objective of Directive 2001/83 and was contrary to the duty of sincere co-operation in article 4(3)EU of the EU Treaty, being liable to jeopardise patient safety and to damage and undermine the coherence of the European Union regime including the protection afforded to pharmaceutical companies in relation to their products. The judge dismissed the claims.

On the claimants’ appeal—

Held, appeal dismissed. It was legally open to NHS Trusts to use compounded Avastin (“CB”) off-label to treat WAMD patients in line with the defendants’ policy. Such preparation and supply of CB would not require a marketing authorisation granted pursuant to Council Directive 2001/83/EC provided that (i) the compounding process did not modify the medicinal product and (ii) the compounding was carried out solely on the basis of individual prescriptions, nor did it require a manufacturing authorisation granted pursuant to the Directive provided that (i) the compounding was carried out in a dispensing pharmacy or by a person legally authorised to carry it out and (ii) that it was carried out solely for retail supply. It neither undermined European Union law, nor was it contrary to GMC guidance for clinicians to recommend it to patients in preference to Lucentis or Eylea even though that preference might well be based on cost considerations. The judge had correctly identified the test for determining the lawfulness of the policy, namely whether it was realistically capable of implementation by the NHS Trusts in a way which did not lead to, permit or encourage lawful acts. Although the policy itself was silent as to the modes by which CB would be compounded, it was capable of being implemented in a lawful way. Accordingly, the challenge to the lawfulness of the policy failed (paras 61, 92–96, 98, 103, 116, 146, 206, 208–210, 212, 213–214).

Novartis Pharma GmbH v Apozyt GmbH (Case C-535/11) EU:C:2013:226, ECJ; F Hoffmann-La Roche Ltd v Autorita Garante della Concorrenza e del Mercato (Case C-179/16) [2018] 4 CMLR 13, ECJ and Novartis Farma SpA v Agenzia Italiana del Farmaco (Case C-29/17) EU:C:2018:931, ECJ applied.

Decision of Wipple J [2018] EWHC 2465 (Admin); [2019] PTSR 922 affirmed on partly different grounds.

Jemima Stratford QC and Emily MacKenzie (instructed by Arnold & Porter Kaye Scholer llp) for the claimant in the first case.

Thomas de la Mare QC and Eesvan Krishnan (instructed by Covington & Burling llp) for the claimant in the second case.

David Lock QC and David Blundell QC (instructed by Mills & Reeve llp, Birmingham) for the defendants.

Victoria Wakefield QC (instructed by Fieldfisher llp) for the first interested party, Roche Products Ltd.

George Peretz QC (instructed by Treasury Solicitor) for the second interested party, the Secretary of State for Health and Social Care.

Monica Carss-Frisk QC (instructed by CMS Cameron McKenna Nabarro Olswang llp) for the third interested party, the Association of the British Pharmaceutical Industry

NHS Engand and the General Pharmaceutical Council, as further interested parties, did not appear and were not represented.

Alison Sylvester, Barrister.

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