IN THE HIGH COURT OF SOUTH AFRICA (SOUTH EASTERN CAPE ... · IN THE HIGH COURT OF SOUTH AFRICA...

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IN THE HIGH COURT OF SOUTH AFRICA (SOUTH EASTERN CAPE LOCAL DIVISION)        CASE NO: 1481/2007 In the matter between: B BRAUN MEDICAL (PTY) LIMITED                       APPLICANT and FRESENUS KABI SOUTH AFRICA (PTY) LTD               RESPONDENT JUDGMENT DAMBUZA J: 1. In this matter, the applicant seeks an interim interdict, on an urgent basis, restraining the respondent from distributing certain documents and from otherwise spreading offending information about a medical product 

Transcript of IN THE HIGH COURT OF SOUTH AFRICA (SOUTH EASTERN CAPE ... · IN THE HIGH COURT OF SOUTH AFRICA...

Page 1: IN THE HIGH COURT OF SOUTH AFRICA (SOUTH EASTERN CAPE ... · IN THE HIGH COURT OF SOUTH AFRICA (SOUTH EASTERN CAPE LOCAL DIVISION) CASE NO: 1481/2007 In the matter between: B BRAUN

IN THE HIGH COURT OF SOUTH AFRICA

(SOUTH EASTERN CAPE LOCAL DIVISION)          CASE NO: 1481/2007

In the matter between: 

B BRAUN MEDICAL (PTY) LIMITED                         

APPLICANT

and

FRESENUS KABI SOUTH AFRICA (PTY) LTD                 RESPONDENT

JUDGMENT

DAMBUZA J:

1. In this matter, the applicant seeks an interim interdict, on an urgent basis, 

restraining the respondent from distributing certain documents and from 

otherwise   spreading   offending   information   about   a   medical   product 

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marketed   and   sold   by   the   applicant   known   as   Venofundin   which   is 

apparently similar medical product known as Voluven marketed and sold 

by the respondent.  

2. There   is   also  an   application,   brought   by   the   respondent,   for   leave   to 

supplement its answering affidavit.  

3. The applicant, a wholly owned subsidiary of  B Braun Melsungen AG, a 

private German Company, and the respondent, a South African Company, 

are   competing   pharmaceutical   companies   which   operate   within   the 

country and internationally.  The medical products in question are a colloid 

plasma volume substitute that is used during surgical operations and in 

emergency units of hospitals and clinics.   Venofundin is a potato based 

product   also   known   as   hydroxyethl   starch   (HES)   130/0.42/6:1   whilst 

Voluven   is  maize  or  waxy­corn  derivative  alternatively   known  as  HES 

130/0.4/9:1.   The respondent’s Voluven product has been used in South 

Africa   since   2002   and   internationally   since   1999.     The   applicant’s 

Venofundin is relatively new, having been registered in South Africa on 2 

March 2007 and launched at the end of March 2007.

4. The facts giving rise to this application are largely common cause.  On 22 

May 2007 representatives of both parties attended a seminar held at 1 

Military Hospital in Pretoria. Various other competitors in the same market 

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as   the   parties   also   attended   the   seminar   and  presented   their   volume 

replacement   therapy  products   to  senior  members  of   the  military.    The 

respondent’s   national   sales   manager,  Marlize   Haarde  made   a 

presentation in respect of the respondent’s Voluven and Armin Junkuhn, 

a   divisional   manager   in   the   employ   of   the   applicant,   made   a 

representation in respect of Venofundin.  In the course of her presentation 

Haarde  referred to  the applicant’s Venofundin, stating, amongst others, 

that:

4.1   Doses of up to 33ml/kg of Venofundin are associated with hyperbilirubinaemia 

(excessive concentration of bilirubin (a bile pigment) in the blood) ;

4.4 Venofundin  is contra–indicated  for  liver  failure  in  its European package  insert 

whereas in South Africa it is not;

4.2 The potato based HES product   is  registered for a dosage of  33ml/kg,  with a 

maximum  daily   dosage   of   40ml/kg   in   acute   cases   and   there   is   no   data   for 

administration of higher doses thereof ; and 

4.3 The potato­derived HES has a greater effect on (blood) coagulation than waxy­

corn derived .

5. These   statements   appear   in   a   36   page   document   prepared   by   the 

respondent   titled  “VOLUVEN   Colloids   Overview”  (the   respondent’s 

pamphlet or Annexure “E” to the founding papers).   This document was 

distributed   by  Haarde  at   the   seminar.   In   this   document   Volume 

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Replacement Therapy is discussed and a comparison is drawn between 

Voluven and Venofundin. In the comparison it is also stated that:

A the Amylopectin/Amylase content of the products is 95/5 for Voluven and 

80/20 for Venofundin;

B Unlike with Voluven, there is no information available on  the safety  of 

Venofundin use in paediatrics; and

C Unlike   with   Voluven   there   is   no   information   available   in   respect   of 

Venofundin   regarding   tissue   storage,   renal   function,   toxicology   and 

compatibility with other drugs.

6. In the founding affidavit Junkuhn states that on 17 April 2007 he received 

an   enquiry   from  Carole   Lawrence  of   the  Life   Healthcare   Hospital 

Groups in the country, requesting clarification on queries that she (Lewis) 

had   received   concerning   Venofundin.   According   to   Lewis   there   were 

insinuations that because Venofundin  is registered as a hetastarch this 

could have clinical consequences, particularly regarding coagulation; that 

because Venofundin contains a fair amount of phosphates it could have 

more extensive side effects than Voluven; that contrary to the only article 

used   in   the   applicant's   detail   aids,   written   by   Lehman  et   al,     a   few 

published studies showed that Voluven has a greater plasma clearance 

than Venofundin;  and  that  potato­derived  HES  has a greater  effect  on 

coagulation   than corn­derived  HES.    Lewis  also enquired whether   the 

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applicant   had   a   safety   data   for   use  of   Venofundin   in   paediatrics   and 

patients with compromised renal or hepatic function.

7. The applicant received further queries from Entabeni Hospital in Durban, 

expressing concern about  the amylopectin/amylase ratio for Venofundin 

and Voluven being different; there being no data available for Venofundin 

regarding   tissue   storage;   Venofundin   being   contra­indicated   for   liver 

failure   in   the   European   package   insert   but   not   in   the   South   African 

package insert; Venofundin dosages of up to 33 ml/kg being associated 

with   hyperbilirubinaemia;   unavailability   of   toxicological   data   for 

Venofundin;   and   unavailability   of   information   regarding   compatibility   of 

Venofundin with other drugs.

8. The applicant  contends  that   the only  conclusion  to  be  drawn  from  the 

similarity   between   the   queries   raised   by  Lawrence  and  Entabeni 

Hospital and the contents of the respondent’s pamphlet, Annexure “E” is 

that   the   respondent’s   representatives   had   been   spreading   injurious 

falsehoods  and  unsubstantiated   rumours  concerning  Venofundin.  Such 

conduct on the part of the respondent, so argues the applicant, constitutes 

unlawful  competition.  The applicant’s case  is  that   in  Annexure “E”,   the 

respondent has made reference to articles written by medical experts on 

the products, thus misleading the reader by giving an impression that the 

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statements   complained   of   are   supported   by   medical   evidence.    Mr 

Mundell  submitted  on  behalf  of   the  applicant   that   the   respondent  has 

undertaken   a   deliberate   extensive   campaign   of   falsely   maligning   the 

applicant’s Venofundin product by suggesting that the product is unsafe 

and has negative side effects which render Venofundin a less safe and a 

less acceptable alternative when compared to Voluven whilst on the other 

hand, claiming unwarranted accolades for Voluven. 

9. The respondent denies that the statements in question are false and that 

its   conduct   constitutes   unlawful   competition.   It   contends   that   the 

statements find support in the studies and articles referred to in Annexure 

“E” and in the package inserts of the products.

 10. Requirements for an interim interdict and unlawful competition

It is trite that ordinarily an applicant seeking an interim interdict must prove 

a prima facie right, a well­grounded apprehension of harm if the interim 

interdict   is   not   granted  and   the  ultimate   relief   is   ultimately   granted,   a 

balance of convenience in favour of the granting of the relief sought and 

absence of an alternative remedy. See Steel and Engineering Industries 

Federation and Others v National Union of Metal Workers of South 

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Africa  (2) 1993 (4) SA 196 (T) 199 G – 205 J;  Setlogelo v Setlogelo 

1914   AD   221;  L   F   Boshoff   Investments   (Pty)   Ltd   v   Cape   Town 

Municipality,   Cape   Town   Municipality   v   L   F   Boshoff   Investments 

(Pty) Ltd 1969 2 SA 256 (C) 267.

11. In an action for damages founded on unlawful competition, a party alleging 

injurious falsehood has to allege and prove that the other party has, by 

word or conduct or both, made false representations; that it had known the 

representations   to   be   false;   that   the   plaintiff   had   lost   or   would   lose 

customers; that the false representation had been the cause thereof; and 

the   defendant   had   intended   to   cause   the   plaintiff   loss   by   the   false 

representation.   Geary & Son (Pty) Ltd v Gove  1964 (1) SA 434 (A). 

Fault, however, is not a requirement for an interdict directed at prevention 

of   unlawful   competition.   See  Van   Heerden   and   Neethling;  Unlawful 

Competition at 69; Schultz v Butt 1986 (3) SA 667 (A). 

12. The applicant's case, as I understand it, is that the respondent's conduct 

constitutes unlawful interference with its (respondent's) right to engage in 

its   trade  and   to  market  Venofundin.  It   contends   that   the   respondent's 

conduct of publishing and distributing injurious falsehood and misleading 

customers about Venofundin constitutes unlawful competition.

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13. That the applicant is entitled to the free exercise of its trade cannot be 

disputed. According to the authors Van Heerden and Neethling (supra at 

283):

"The   direct   infringment   of   the   goodwill   of   a   competitor's   undertaking   by   the 

publication   of   disparaging,   untrue   statements   about   his   business,   goods   or 

services,  is undoubtedly unlawful.  Such a direct  attack on a rival   is  clearly  in 

conflict with the competition principle (and therefore contra bonos mores ): 

there is no question of performance (merit) competition because the perpetrator 

is deceiving the public as to the merit of his rival's performance"  

See   also  Abakor   Ltd   v   Crafcor   Farming   (Pty)   Ltd   t/a   Riversdale 

Feedlot 2001  (1) 973 (N). 

  However,   this   right   to   free  exercise  of   trade   is  not  without   limitations. 

There is a general acceptance that because of self­interest, competitors 

cannot   evaluate   their   performances   and   products   objectively   and 

impartially.   Misleading   images   therefore   become   an   almost   inevitable 

feature  of   comparative  advertising  even   if  only   to  a  small  extent.  The 

South African Courts, in line with English and American law, have held 

that   publication   of   true   disparaging   statement   is   lawful.   In  Post 

Newspapers (Pty) Ltd v World Printing and Publishing Co Ltd  1970 

(1) SA 454 (W) Nicholas J held at 456 F­G that:

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" But where a trader does not limit himself to a comparison of his goods with 

those manufactured by another trader and a mere statement that they are inferior 

to his own, but makes some untrue statement of fact about his rival's goods ­ for 

example, states that they are rotten or contain deleterious ingredients ­ an action 

on the case will lie, on proof that such statement was published maliciously and 

(save in cases falling within the provisions of the Defamation Act 1952, sec 3 (1) 

that special damage has ensued.

'The general position in our law is: comparison ­ yes; but disparagement ­ no' 

(per Hodson LJ; in Cellacite & British Uralite v Robertson, The Times, July 23rd, 

1957 (C.A.)

There can be no doubt,  on  the authority  of  Fitchard's  case,  and subsequent 

cases that such statements would be actionable in our law."

 

This   principle   has   been   criticised   on   the   basis   that   where   a   true 

disparaging statement is irrelevant to the competitive struggle concerned, 

it should be wrongful. See Van Heerden and Neethling (supra) at 302. In 

this case, however, the application is founded on falsity and misleading 

nature of the statements. Further, I am satisfied that the statements under 

consideration are relevant to the competitive struggle between the parties. 

14. According to the respondent Annexure “E” was prepared in the context of 

the  parties’  mutual   clients   having   requested   the   respondent   to   furnish 

them   with   medical   and   scientific   information   regarding   the   differences 

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between the two products i.e. the differences between potato based starch 

and   maize   starch   based   HES.   The   request   followed,   so   says   the 

respondent, the applicant having represented to customers that Voluven 

and Venofundin are bio­equivalents;   that Venofundin is similar to and/or 

better than or equivalent to or safer than Voluven; that Venofundin is the 

worlds’   fastest,   most   efficient,   fluid   replacement   system,  is   a   new 

technologically improved, chemically modified HES 130. The respondent 

contends that the first group of statements carries with them the inference 

that Venofundin  is medically superior in a number of respects including 

that it is safer and/or associated with less risk and/or improved results and 

that the second group constitutes passing off and/or injurious falsehood on 

the   part   of   the   applicant.   The   respondent   contends   that   in   preparing 

Annexure “E” it sought to draw a distinction between the two products, to 

enable its representatives to respond to queries from customers to whom 

representations   had   been   made   on   Venofundin.   Needles   to   say   the 

respondent denies that  the statements are misleading and/or constitute 

injurious   falsehood.   The   applicant,   on   the   other   hand,   denies   that   it 

attempted   to   market   Venofundin   as   a   bio­equivalent   of   Voluven   and 

maintains   that   it   could   not   have   done   so   given   the   pharmaceutical 

differences of the products; one being a potato starch and the other, a 

maize starch based product. The applicant contends that the rest of the 

statements attributed to it are nothing more than mere puffery. 

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15. Against   this   background   I   then   proceed   to   consider   whether   the 

statements in question constitute injurious falsehoods, were made without 

basis and/ or are misleading insofar as they relate to the two products. 

16. That doses of up to 33ml/kg of   VENOFUNDIN are associated with 

hyperbilirubinaemia

The   applicant   contends   that   this   statement   is   false   and   that   it   was 

intended to communicate that doses of up to 33ml/kg of Venofundin are 

associated  with  hyperbilirubinaemia,  which  could   indicate  possible   liver 

dysfunction. According to the respondent the statement finds support in an 

article written by medical experts Sander, Reinhart and Meier­Hellmann 

in 2003. The respondent points that in Annexure “E” reference is made to 

this and other articles written by experts in the medical field to safeguard 

against possible misinterpretation of the statements. It is common cause 

that the article by Sander et al which forms part of the record, is based on 

a study comparing Venofundin and another potato based product, the 6% 

HSE 200/0.5. In the article the authors state that:

“A novel potato starch­based HES solution (HES 130/0.4) was developed 

by B Braun Melsungen AG…..

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This trial was designed as an approval study for B Braun Melsungen AG 

and Serumwer Bernberg AG…..

Amount   of   colloidal   infusions   were   adjusted   individually   up   to   the 

recommended daily dosage of 33ml/kg bodyweight for pentastarches like 

6% HES 130/0.4 and 6% HES 200/0.5 (10,17)…..

A   total   of   36  equally   distributed  adverse   events   (AE)  with  unlikely  or 

questionable relationship to the study drugs were documented (17AE in 

the HES 200/0.5 group and 19 in the HES 130/0.4 group, respectively. 

The most common AE was mild to moderate hyperbilirubinaemia at the 

morning of  the  first  postoperative day with questionable relationship  to 

study medication ….

In  safety  assessment,   the  most  adverse  event  was  mild   to  moderate 

hyperbilirubinaemia.    However this was seen  in a few patients of both 

study groups, with questionable relationship to study drugs.”

17. The applicant  contends  that   the statement,   in   failing  to   reveal   that   the 

experts   concluded   that   the   relationship   between   hyperbilirubinamea 

observed in patients and the study drugs,  is misleading and that  in the 

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light of this inconclusive result the article cannot be valid foundation for the 

conclusion  drawn  by   the   respondent.  According   to   the  applicant   post­

operative hyperbilirubinaemia may be introduced by impaired excretion of 

bile,   "possibly  due   to   lowered   intestinal   perfusion  and  aggravated  by  an   increased 

bilirubin supply from fragmented erythrocytes or certain concomitant medication such as 

antibiotics". 

18. My understanding of this contention is that other factors, (other than the 

study   drugs),   may   cause   post­operative   hyperbilirubinaemia.   The 

applicant contends further that the statement compels the reader thereof 

to draw the conclusion that the safety characteristics of Voluven exceed 

those   of   Venofundin   in   that   Voluven   is   not   associated   with 

hyperbilirubinaemia whereas Venofundin is. From the evidence before me, 

I  am of   the  view  that  a   reader  of   the  statement  who has background 

knowledge   of   Voluven   may   indeed   draw   from   the   statement,   the 

conclusion put forth by the applicant. But that conclusion may, in my view, 

be drawn from a mere reading the article. Further, I am not able to find 

any basis on which to conclude that the statement is false.  The applicant 

does   not   demonstrate   that   Voluven  is   not  associated   with 

hyperbilirubinaemia.  It does not explain why the statement is false. It does 

not dispute  the assertion by the respondent  that despite  the numerous 

tests   done   on   Voluven,   there   has   been   no   association   between   the 

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product and hyperbilirubinaemia. Whilst  it  is true that the Sander article 

does not conclude that Venofundin causes hyperbilirubinaemia, it  is not 

true that the article  does not associate Venofundin or potato starch HSE 

with hyperbilirubinaemia. Even if the Sander study is inconclusive on the 

association between Venofundin and hyperbilirubinaemia,  that does not 

make the statement  false. Neither does the fact  that other  factors may 

cause hyperbilirubinaemia. 

19. That in the European package insert Venofundin is contra – indicated 

for liver failure whereas in the South African version it is not. 

The applicant contends that the statement is false and is intended to warn 

the  applicant’s   customers   that  Venofundin   can   cause   liver   damage  or 

impairment of liver function. The applicant argues that the South African 

package  insert,  under   the  heading   "warnings",  does warn  of  a  contra­

indication   for   liver   or   hepatic   dysfunction.   It   is   not   in   dispute   that   a 

contraindication in a package insert  of a medical product  is the portion 

thereof which informs the reader that a particular medicine should not be 

used   in   patients   or   persons   with   a   particular   medical   and/or   physical 

condition as stipulated in the insert. 

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In the South African version of Venofundin package insert, the following 

appears:

"CONTRA ­ INDICATIONS

•Hypersensitivity to hydroxyethyl starch or any of the other ingredients.

•Intracranial bleeding.

•Renal failure with oliguria or anuria.

•Dialysis treatment.

•Sever hypernatremia or severe hyperchloremia.

•Fluid overload (hyperhydration) including pulmonary oedema."

20. The   contra­indications   in   the   German   European   Venofundin   package 

insert have been translated by the respondent as follows:

"Gegenanzeigen [Contraindications]

.....Schwere leberfunktionseinschrankung [Severely impaired hepatic [liver] 

function [i.e. liver failure]]..."

21. In   the English  version of   the  European Venofundin package  insert   the 

contraindications appear as:

"Contraindications

­ Hyperhydration states including pulmonary edema.

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­ Renal failure with oliguria or anuria

­ Intracranial bleeding

­ Severe hypernatremia or severe hyperchloremia

­ Hypersensitivity to hydrxyethyl starch or to any of the excipients.

­ Severely impaired hepatic function.

­ Congestive cardiac failure" 

22. By  all   accounts   it   appears   to   be   factually   correct   that   contrary   to   the 

European version, the South African Venofundin package insert contains 

no contraindication  for  severely  impaired hepatic  function.  The warning 

issued in the South African package insert of Venofundin is that: "[p]articular 

caution should be exercised in patients with hepatic insufficiency, pulmonary oedema and 

in   those   with   blood   coagulation   disorders".  This   warning,   in   my   view  simply 

means   that   particular   care   should   be   taken   when   administering   the 

product  to patients suffering from the stated conditions.  It   falls  short  of 

advising that the product should not be administered to patients suffering 

from such stated conditions. I am therefore satisfied that the statement is 

neither misleading nor false.

23. That   the   potato­derived   HES   has   a   greater   effect   on   (blood) 

coagulation than the waxy­corn derived HES.

It is common cause that this statement was drawn by the respondent from 

an article written by  M Jamnicki  and others titled "The effect of potato 

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starch derived and corn starch derived hydroxyethyl  starch on  in 

vitro blood coagulation". At the beginning of the article the authors say:

    “The present study was designed to investigate the effects on in  

vitro blood coagulation of a newly developed potato starch derived hydroxyethyl 

starch  (HES) and  to  compare  those effects  with   those of   the  traditional  corn 

starch derived HES, as assessed by thrombelastography (TEG).”

24. The applicant contends that the respondent was not entitled to extrapolate 

the Jamnicki study to Venofundin and Voluven as the study was not done 

on these product. It is so that the Jamnicki study did not compare Voluven 

and Venofunden. It compared a potato­based HES  (INFUKOLL HES 6%) 

and a maize­based HES (HAES ­ steril 6%) and the authors concluded 

that  “potato   starch   derived   hydroxyethyl   starch   compromises   in   vitro   blood 

coagulation more that corn starch derived hydroxyethyl starch.”  The 

applicant's case in this regard, as I understand it, is that data acquired in 

clinical studies on a potato and maize­ based HES cannot be utilised to 

infer similar properties in Venofundin and Voluven. There is, however, no 

explanation why such an inference cannot be made either generally or in 

this particular case. Whilst the Jamnicki study does not specifically refer to 

Venofundin and Voluven, the products in question are derived from potato 

starch and maize starch. I find no basis to conclude that the respondent's 

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reliance on the study is not justified as submitted by Mr Mundell on behalf 

of the applicant. 

25. The applicant  contends  that   there  is  essentially  no  distinction  between 

Venofundin   and   Voluven   insofar   as   they   are   associated   with   blood 

coagulation. In this regard the applicant relies on an opinion of Dr Gernot 

Willy Konrad Marx, an international medical expert whose opinion is that 

the fact  that package  inserts  for both Venofundin and Voluven  indicate 

that care must be taken when administering the products to patients with 

severe liver disease or severe bleeding disorders negates the distinction 

which the respondent seeks to draw between the two products. According 

to  Dr Marx  a recent trial comparing Venofundin and Voluven showed a 

general bio­equivalence. He states that there is no evidence that doses of 

up   to   33ml/kg   of   Venofundin   have   been   associated   with 

hyperbilirubinaemia and maintains that the study on which the respondent 

relies   in   associating   Venofundin   with   liver   impairment   and/or 

hyperbilirubinaemia   does   not   justify   the   conclusion   drawn   by   the 

respondent.  He points out that in the Sander study the authors measured 

bilirubin  which  had  not  been   investigated   in  previous   trials  on  volume 

replacement therapy. My view is that the fact that levels of bilirubin were 

not measured in previous studies has no effect on the results of a study 

wherein bilirubin was measured. Nor does that fact demonstrate that there 

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is  no  association  between  Venofundin  and  hyperbilirubinaemia.   It   also 

does  not  detract   from  the  uncontested  assertion   that  no  studies  have 

shown an association between hyperbilirubinaemia and Voluven. 

26. Further, as Mr Rowan submitted on behalf of the respondent, Dr Marx's 

opinion that the two products are bioequivalent and/or their end product is 

identical,   is   rendered doubtfully  an article co­authored by  the same  Dr 

Max, G Lehman  and  H Forster,   in which  it   is  concluded  that   the  two 

products must be considered as not being bio­equivalent.  Another expert, 

Professor Guy Richards, in a written opinion states that:

"The   Lehman   study   (of   which   Prof   Gernot   Marx   is   a   co­author)   and   the 

Sommermeyer report (attached) indicate that Voluven and Veonofundin are not 

bio­equivalent. In fact the raw materials utilized are entirely different waxy maize 

for Voluven and potato for Venofundin). As a consequence these products have 

a significant  potential effect on their pharmacokinetic profiles".

27. Drs Klaus Sommermeyer,  Franz Cech  and  Richada Scchossow  also 

point out that postoperative hyperbilirubinaemia is a side effect not known 

in waxy maize starch derived HES. They conclude  that "waxy maize  and 

potato starch based hdroxyethyl starch plasma volume expanders differ in their chemical 

fine structure. Their pharmacological and clinical equivalence remains to be proven with 

further studies". Dr Sommermeyer's opinion is that in the light of the physio­

19

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chemical differences between the two products, the claimed similarity of 

potato starch based products to waxy corn starch based products is not 

justified   because   theoretical   arguments   and   published   data   indicate   a 

higher inference on coagulation of the potato starch based products. 

28. That Venofundin is registered for a dosage of 33ml/kg bodyweight; 

with the maximum dosage of 40ml/kg for one day in acute cases (and 

there is no data for higher doses). 

In   contending   that   this   statement   is   false   the   applicant   refers   to   the 

European package insert of Venofundin and an article written by Dr Marx. 

The relevant portion on the South African package insert for Venofundin 

reads: 

"  ...The maximum daily dosage is 33/ml/kg body weight per day...

In cases of acute and severe bleeding a higher dose may be given for 1 day if 

indicated after the risk/benefit analysis. However,  dosage of more than 40ml/kg 

bodyweight per day should not be exceeded". (emphasis supplied)

In the European package insert the following appears:

"The maximum infusion rate depends on the clinical situation. Patients in acute 

shock   may   be   administered   up   to   20ml   per   kg   of   body   weight   per   hour 

(equivalent to 0,33mlkg/min or 1.2g of hdroxyethyl starch per kg of bodyweight 

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per hour). In life threatening situations 500ml may be administered by manual 

pressure infusion. Also see "Method of administration and duration of therapy.

Maximum daily dose:

Up   to   50ml   of   Venofundin   per   kg   of   body   weight   (equivalent   to   3.0g   of 

hydroxyethyl   starch   per   kg   of   bodyweight).   This   is   equivalent   to   3,500ml   of 

Venofundin for a 70 kg patient."

Dr Marx, in his written opinion to the applicant, states that:

"In the European SPC the maximum infusion rate of Venofundin is 50ml/kg body 

weight over 24 hours similar to the SPC of Voluven.In the South African SPC of 

Venofundin it  is stated that the maximum infusion rate depends on the clinical 

situation. There is no scientific reason that the infusion rate of one drug should 

be different between Europe and South Africa".

The opinion   is,  however,  silent  on   the   instruction   in   the  South  African 

insert that dosage of more that 40ml/kg per day of Venofundin should not 

be administered. My view is that in the light of this warning in the South 

African   leaflet,   the   fact   that   the  European  package   insert  provides   for 

administration of  higher  dosage of   the product   is   irrelevant   to  a  South 

African reader of the leaflet or user of the product. In this light therefore, 

the statement cannot, in my view, mislead or constitute injurious falsehood 

or unlawful competition.    

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29. To further disprove the distinction drawn by the respondent between the 

two   products,   the   applicant   compares   the   "almost   identical"   package 

inserts thereof. These include identical contraindications for both products; 

the   same   maximum   infusion   rate   for   both   products   being   33ml/kg 

bodyweight;   both   products   being   registered   for   similar   side   effects, 

precautions,  safety  and  efficacy   in   relation   to   children  and  use  during 

pregnancy and lactation. The applicant contends that the package inserts 

reveal minimal meaningful distinction between the products and that the 

statements are not justified in the light thereof. In my view the comparison 

of the package leaflets does not prove the falsity of the statement or that 

the statements are misleading. In any event, as the respondent contends, 

the package insert used by the applicant in respect of Voluven is outdated, 

having been used prior to 2004. The scope of Voluven has been widened 

with the registration of the 2004 and 2007 package inserts for the product; 

for example the 2004 package insert states that there has been limited 

use of Voluven in children.

30. I  am not  persuaded   that   the  statements  made  by   the   respondent  are 

misleading or constitute   injurious  falsehood and/or   find no basis   in   the 

articles cited by the respondent in Annexure “E”. Even if the criticism by 

the applicant that the statements are not supported by the articles cited in 

22

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Annexure “E” is well founded, it does not follow that the statements are 

false.  “It is an error to say that false premises must logically lead to propositions which 

are false:  it   is plain  that a good cause may have bad reasons offered on its behalf”. 

Post Newspapers  (supra)  at 459 H.   It  is not the applicant’s case that 

Venofundin is distinguishable from other potato based products and that 

properties observed in other potato based products should therefore not 

be attributed to Venofundin.  On the other hand expert evidence suggests 

that   the   results   of   studies   done   on   potato   derived   starches   are   of 

relevance to potato based products generally. 

It is my view in the circumstances that the applicant has not made out a 

case for the relief it seeks.

31. Application to file a supplementary answering affidavit. 

The  respondent  wishes   to  supplement   its  answering  affidavit   for   three 

reasons.  Firstly   it   contends   that   it   needs   to   respond   to   certain   issues 

raised for the first time in the applicant’s replying affidavit. It further seeks 

to place before the court certain information that it was previously unaware 

of. It also seeks to place before court certain expert evidence that it could 

not file with the answering affidavit because of time constraints.  

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32. New Matter 

In the replying affidavit the applicant attached a document (annexure R 5) 

titled;

"VOLUVEN vs Venofundin

Internal use only ­ Arguments for the market"

The   document   is   yet   another   comparison   between   the   two   products. 

Amongst others, the following appears on the document:

VOLUVEN VENOFUNDENStudies   available #1 in a SAFETY 

> 60 VOLUVEN studies  proving safety

3 studies (2 published)­use Voluven studies for argument

Dose limit 45ml/kg registrationNeff   2003   proved  70ml/kg/day for up to 28 days to be safe with no   effect   on   renal   function   or coagulation

33ml/kg registration Venofundin SmPC says you can give maximum 40ml/kg for ONE day in acute cases

Blood   typing before infusion

No SmPC No influence on blood groupserology Voluven scientific info

Yes according in European SmPC but no according to SA SmPC???

Infusion speed No limitations SmPC 20ml/kg/hour in European SmPC but not included in SA SmPC???

Liver failure Not contra­indicated Contra­indicated  in European SmPC but no in SA SmPC???Sander 2003 Venofundin @ 33ml/kg associated with hyperbilirubinaemina

Coagulation Jamnicki 1998 compared HES 200/0.5 maize vs potato starch and showed  potato starch  to  have  greater  effect  on coagulation than maize starch

33. It is common cause that despite the document being an internal document 

intended for use by the respondent's representatives, copies thereof were 

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handed to medical staff at hospitals in Vereeniging  and at the West Coast 

Life Hospital in the Western Cape. In the answering affidavit the applicant 

contends that this document was a further attempt by the respondent to 

persuade the staff at these hospitals that Venofundin has a greater effect 

on coagulation than Voluven. 

34. A fundamental consideration in an application for filing of further affidavits 

is that a matter should be adjudicated upon all facts relevant to the issues 

in dispute. South Peninsula Municipality v Evans 2001 (1) SA 271 (C) 

at 283 A­H. I am of the view that the contents of Annexure "R 5" are in 

essence a repetition of allegations already made by the parties in the first 

two sets of affidavits. They do not constitute new matter. The respondent, 

in my view, answered to these allegations in the main answering affidavit. 

That   certain   minor   allegations   were   not   included   in   the   applicant's 

founding papers   (for example, the allegation in annexure R5 that there 

are in excess of 60 studies proving safety of Voluven whereas there are 

only three in respect of Venofundin) does not take the matter any further.

35. The respondent further takes issue with allegations made in paragraphs 

40 to 45 of the replying affidavit. In these paragraphs the applicant refers 

to the respondent’s distribution of the Jamnicki article to attendees of an 

anaesthetic refresher course held at Groote Schuur Hospital from 2 to 5 

25

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August 2007.  The applicant  contends,   in  the replying affidavit,   that   the 

article was distributed by the respondent with the intention to persuade the 

persons to whom it was given, that Venofundin compromises in vitro blood 

circulation more than corn starch HES such as Voluven. In paragraph 44 

of   the   replying   affidavit  Junkhun  refers   to   an   incident   in   which   a 

representative   of   the   respondent,  Shelley,  presented   a   copy   of   the 

Jamnicki  article  to  a  specialist  at  St  Augustine Hospital   in Durban and 

wrote on the article, in her handwriting, that the potato starch HES being 

referred to in the article is Venofundin and the corn starch HES referred to 

is Voluven. I am, again, of the view that these allegations are a repetition 

of what is already contained in the parties' first two sets of affidavits. I can 

only conclude that the applicant's intention, in citing these incidents, was 

to demonstrate that the applicant persists with the offending conduct. In 

view of the respondent’s denial of any wrongdoing, such persistence was 

to be expected. In any event the incidents referred to in paragraphs 40 to 

45   of   the   replying   affidavit   are,   strictly   speaking,   not   relevant   to   this 

application and should be properly struck off from the record.   

    36. Facts that the respondent recently became aware of. 

The  information referred  to  by  the respondent   is  a written comparative 

analysis between Venofundin and Voluven prepared by the applicant. In 

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this document the applicant states, amongst others, that both products are 

produced to contain 100% of Amylopectin in the finished product and that 

all Amylose is removed. The comparative analysis further states that corn 

starch   contains   Sulphur   and   potato   starch   contains   Phosphate,   the 

content of which, in both products, is very small and clinically irrelevant. I 

can only conclude that all this is intended to disprove the distinction drawn 

by the respondent between the two products. The respondent contends 

that   the   truth   is   that   the   degree   of   esterification   (modification)   of 

Phosphate   in   the   potato   starch   HES   derived   product   is   higher   in 

comparison   to   the   waxy   maize   starch   derived   product.     Lastly   the 

respondent contends that contrary to the Lehman and Marx study, which 

shows “advantages for Venofundin” in respect of plasma clearance, three 

other studies conclude that Voluven has a faster clearance rate than that 

reported in the Lehman study.  

Once more, my view is that the applicant’s comparison adds nothing new 

to the case made by the applicant in the founding papers. The respondent 

may have only become aware of this document subsequent to the filing of 

the answering affidavit. But the contents of the document are neither the 

basis   of   the   application   nor   the   respondent's   reason   for   preparing 

Annexure “E”. It is therefore irrelevant to this application. 

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37. The evidence of Drs Gopalan and Joubert

This  evidence   is   contained   in   reports   prepared  by   the   two  experts   in 

respect   of   certain   aspects   of   the   Sander   study.   The   reports   were 

prepared on the respondent’s instruction but were not completed in time 

for filing together with the answering affidavit.  The respondent refers to 

portions of the expert reports which refute the claims that the association 

between Venofundin and Voluven finds no support in the Sander study. 

Dr Gopalan remarks that:

“Hyperbilirubinemia is indeed an indication if impairment of liver function. The study 

in   question   does   indeed   describe   hyperbilirubinemia   in   patients   included   in   the 

study…..While   this   study   does   not   prove   causation   with   respect   to   the   study 

medication (Venofundin), it does potentially show an association. From a clinician’s 

perspective, this would have to be born in mind with respect to drug administration 

until further evidence either proves or refutes this association. Note the comparator 

drug in this study was not Voluven (Venofundin) but a 200/0.5 potato derived starch. 

From   a   scientific   perspective,   this   raises   the   question   as   to   whether 

hyperbilirubinemia is associated specifically with potato derived solutions”.

Regarding contra­indications for liver failure Dr Joubert states that:

“There   is   a   clear   distinction   between   a   contraindication   with   respect   to 

administration and a warning with respect to administration. A contraindication 

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would mandate non­  administration of   the drug whereas a warning would  be 

seen as a strong cautionary advice with respect to administration of the drug.

It is very surprising that the European package insert for Venofundin carries a 

contraindication for administration in severe, hepatic dysfunction, while the South 

African version does’nt. From a clinician’s perspective this is of grave concern.”

38. It   would   appear   that   the   assertions   made   by   the  Drs   Gopalan  and 

Joubert  in   these   paragraphs   are   the   main   motivation   for   seeking 

admission of their affidavits and reports. But the respondent filed, together 

with  its main affidavits, reports and opinions by no less than four other 

experts,  including  Drs Sommermeyer  and  Richards,  who also warned 

that   the   presence   of   post­operative   hyperbilirubinaemia   in   patients   on 

whom Venofundin had been administered requires further  investigation. 

Further, the respondent, in the answering affidavit, explains conclusively 

the   difference   between   a   "contraindication"   and   a   "warning"   in   the 

package insert of a medical product. 

39. Having   considered   these   aspects   I   am   satisfied   that   the   respondent 

stands   to   suffer   no   prejudice   if   the   filing   of   a   supplementary 

answering   affidavit   is   not   permitted.   Further,   in   view   of   the   irrelevant 

allegations   made   in   the   applicant's   replying   affidavit,   to   which   the 

respondent sought to respond in the supplementary answering affidavit, I 

am of the view that the appropriate costs order would for each party to pay 

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its own costs in respect of the application for leave to file a supplementary 

answering affidavit.

The following order shall therefore issue:

1. The interim relief sought is refused with costs;

2. The application for  leave to file a supplementary answering   affidavit  is 

dismissed with no order as to costs.

_________________________

N DAMBUZA

JUDGE OF THE HIGH COURT

Applicant’s Counsel: Adv Mundell

Applicant’s Attorneys: Greyvensteins Nortier

St George’s House

104 Park Drive

PORT ELIZABETH

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Respondents’ Counsel: Adv Rowan

Respondent’s Attorneys: Pagdens­Stultings

18 Castle Hill 

Central 

PORT ELIZABETH

Heard on: 1 November 2007

Delivered on: 15 April 2008

 

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