Allergan (AGN) has been part of a high-profile patent battle with Mylan (MYL) and Teva (TEVA) over dry-eye drug Restasis. The company transferred the patents to the St. Regis Mohawks in Q3 2017. The patents were invalidated in federal court by Judge William Bryson in September 2017. The only thing standing in the way of generic Resasis an inter partes review (“IPR”) brought on by Mylan. To change the narrative Allergan has engaged in layoffs, bought back shares and sought strategic options, including a potential break up of the company. In March a Federal Circuit Court stayed an inter partes review (“IPR”) pursuant to Restasis. The IPR could take place in a few months, which could finally clear the way for generic Restasis.
Restasis is Allergan’s second-largest drug, and represents 9% of its total revenue. Generic Restasis would crush its revenue and cash flow, and make it difficult to repay its $30 billion debt load. It must protect Restasis at all cost. In challenging the IPR, the Mohawks and Allergan, have effectively challenged the authority and reputation of Senator Claire McCaskill … the last lawmaker anyone would want to trigger …
