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B.C. company sanctioned by U.S. Treasury Department wants Health Canada licences back

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A chemical firm based in Port Coquitlam, B.C., claims Health Canada wrongfully cancelled its licences to make natural health products after being sanctioned by the U.S. Treasury Department for alleged involvement in importing precursor chemicals that could be used in illicit drug production.

Deputy Treasury Secretary Wally Adeyemo speaks at the Justice Department, Jan. 18, 2023, in Washington. THE CANADIAN PRESS/AP, Nathan Howard

Valerian is now taking Health Canada to Federal Court, claiming in judicial review applications that the Canadian actions were solely based on a U.S. Treasury news release alleging it was involved in “the international proliferation of illicit drugs.” A Health Canada guidance document defines precursors as “chemicals that are frequently diverted from legitimate activities to the illegal manufacture of drugs.”

The department’s statement said Valerian Labs was a “major customer” of Jinhu Minsheng, receiving shipments of methylamine hydrochloride — which it called a precursor used to produce methamphetamine and MDMA. Valerian’s applications filed Sept. 13 in Federal Court in Vancouver say Health Canada “has not set out any justification as to why the press release provides reasonable ground to believe that a suspension is necessary to prevent injury to the health of purchasers or consumers of products manufactured by Valerian Labs.”

“The department is committed to verifying that health products manufactured and sold in the Canadian market are safe, effective and of high quality. When there is information that could give rise to health and safety risks, Health Canada will determine if compliance and enforcement action is required and communicate the risks to the public, if warranted.”

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