Advertisement

Shire sues Allergan in U.S. over dry eye drug

Shire sues Allergan in U.S. over dry eye drug
From Reuters - October 2, 2017

(Reuters) - Allergan Plc was sued on Monday by Shire Plc for allegedly scheming to block doctors from prescribing its new treatment for dry eye disease.

In a complaint filed with the federal court in Newark, New Jersey, Shire accused Allergan of violating antitrust laws to preserve its roughly 90 percent share in Medicare prescription drug plans for its older and clinically inferior dry eye drug Restasis, and block prescriptions of Shires rival drug Xiidra.

Quite simply, Allergan has and will continue to use bundled discounts, exclusive dealing, coercion and interference to unlawfully block Shire from competing with it, and to maintain its monopoly in the Part D market at all costs, Shire said, referring to the Medicare drug plans.

The lawsuit follows Allergans announcement on Sept. 8 that it transferred its Restasis patents to the Saint Regis Mohawk Tribe in upstate New York, whose sovereign status could limit legal challenges. The Tribe subsequently agreed to license the patents to Allergan.

Four U.S. senators last week called for a probe of whether the unusual move was anti-competitive and intended to keep prices high.

Restasis is Allergans largest drug other than Botox, with sales of $1.49 billion in 2016 and $676.4 million in the first six months of 2017, regulatory filings show. Shire has saidXiidra sales totaled $96 million from January to June.

Allergan spokesman Mark Marmur said the lawsuit has no merit, and the company complies with Medicare procedures.

Advertisement

Continue reading at Reuters »