Restasis buyers level antitrust lawsuit against Allergan

A proposed class of Restasis buyers filed an antitrust suit last week in a Texas federal court against Allergan (NYSE:AGN), according to reports from Law360.

The suit accuses Allergan of blocking generics to its dry-eye drug using tactics like sham infringement suits and a controversial deal with a Native American tribe.

In September, Allergan struck a deal to transfer its Restasis patents to the St. Regis Mohawk Tribe in New York 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.

In October, a Texas judge ruled that claims to a number of patents for Restasis were invalid due to obviousness. The ruling opens the door for generic versions of the drug that accounted for nearly 10% of Allergan’s revenue last year.

Allergan has said that it plans to appeal the Texas judge’s decision.

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