Canada's Supreme Court paves way for generic Viagra

There was disappointing news for global pharma behemoth Pfizer (NYSE: PFE) yesterday, when the Canadian Supreme Court annulled the firm’s patent on Viagra (sildenafil), its blockbuster erectile dysfunction drug.

In a unanimous vote (seven to nil), the Supreme Court upheld the challenge of Teva Canada, the local subsidiary of Israeli generics giant Teva Pharmaceutical Industries (NYSE: TEVA), claiming it did not meet the law's disclosure requirements, and the Court concluding that Pfizer had tried to "game" the Canadian system, and thus paving the way for cheaper, generic versions to come to the market.

The outcome follows several years of litigation that saw the Federal Court issue a prohibition order against Teva Canada (June 2009); Teva Canada's appeal of the decision which was dismissed by the Federal Court of Appeal (September 2010); and ultimately its successful appeal to the Supreme Court of Canada this past April.