Allergan (NYSE:AGN) said yesterday that it inked a deal with InnoPharma to settle a patent challenge over Allergan’s dry eye drug, Restasis.

InnoPharma is one of four companies challenging Allergan’s patents to its eye drop product. The group also includes Mylan (NSDQ:MYL), Teva Pharmaceuticals (NYSE:TEVA) and Akorn Inc. (NSDQ:AKRX) – all of which are challenging the Restasis patents in federal court.

The settlement comes after Allergan made a deal with the St. Regis Mohawk Tribe in New York to transfer its Restasis patents in an attempt to halt any review by the U.S. Patent and Trademark Office. The tribe agreed to license the patents exclusively to the company in exchange for payments.

Both parties have argued that the tribe’s sovereign immunity render the patents outside of the trademark office’s power of review.

The deal struck a nerve around the pharmaceutical industry and with politicians. Sen. Claire McCaskill (D-MO) has since drafted a bill and a committee in the House of Representatives is investigating the deal, Reuters reported.

According to its settlement, InnoPharma can start selling a generic version of Restasis on Feb. 24,2024 – six months ahead of the scheduled expiration dates for Allergan’s patents.

The pharma giant added that it may grant InnoPharma permission to start selling an authorized generic supplied by Allergan starting on Aug. 28, 2024.

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