Allergan: Restasis Lawsuit From Kroger, Walgreen Could Cost Billions

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Allergan's Bill Meury and Brent Saunders

Allergan (AGN) has gone to lengths to protect its patents. Drug makers have every right to protect their intellectual property. They practically have a fiduciary responsibility to their shareholders to do so. However, Allergan’s aggressive tactics have been considered by many to have crossed the line. In Q3 2017 the company sold patents for dry eye drug Restasis to the St. Regis Mohawk Tribe. This drew the ire of both lawmakers and generic rivals. Judge William Bryson ruled the Restasis patents were invalid due to obviousness in October 2017. Only an inter partes review (“IPR”) and FDA approval stand in the way of generic Restasis reaching the U.S. market.

Allergan has been cutting costs in advance of the potential arrival of generic Restasis …  While the company’s EBITDA reflects major cost take outs, it does not fully reflect the impact of revenue declines from generic Restasis.

Walgreen, Albertson, Kroger Sue Allergan Pursuant To Restasis

Last month Walgreen, Albertson and Kroger (KR) sued Allergan, accusing the company of antitrust violations for attempting to stop rivals from selling generic Restasis. The retailers are suggesting that Allergan pay triple the damages. In Q4 2017 Restasis buyers also sued the company for anti-trust violations. Shocking The Street, an exclusive investment service the Shock Exchange runs in conjunction with Seeking Alpha, estimates the combined legal exposures could cost AGN billions. Read more:

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