When it comes to protecting its drug patents Allergan’s (AGN) management team appears to be smarter than the average bear. The company has thwarted Teva (TEVA) and Mylan (MYL) from launching generic Restasis since the second half of 2014. The patent battle heated up in Q3 2017 over the drye-eye treatment. In U.S. District Court in Marshall, Texas, Allergan accused the generic rivals of violating Restasis’ patent protections. Teva and Mylan countered that Allergan was attempting to extend Restasis’ exclusivity. The original patent on Restasis was due to expire in May 2014, but Allergan got it extended for another 10 years.
In September 2017 Allergan transferred the Restasis patents to the St. Regis Mohawks; Allergan attempted to use the Mohawks’ sovereign immunity to void an inter partes review (“IPR”) brought on by Mylan. At the time Allergan CEO Brent Saunders thought he had pulled a “boss move”:
"I believe it's novel," $AGN CEO @brentlsaunders tells me of IPR deal with Saint Regis Mohawk Tribe https://t.co/rx38MdnaOh
— Meg Tirrell (@megtirrell) September 8, 2017
The patents were invalidated in federal court due to obviousness. However, nine months later the IPR has not taken place and generic Restasis is not on the market. In February 2018 the Patent Trial And Appeal Board (“PTAB”) ruled Allergan could not use the Mohawks’ sovereign immunity to thwart an IPR for Restasis. Allergan and the Mohawks appealed the decision. A ruling is due any week now. According to Shocking The Street, a premium service the Shock Exchange runs in conjunction with Seeking Alpha, a recent ruling by Judge Harvey Bartle could seal Allergan’s fate. Read more:
