In a blow to Allergan (AGN), a federal judge invalidated the patents on its Restasis eye treatment, the latest twist in a captivating controversy over the fate of the best-selling medicine.
The ruling brings some of the largest generic drug makers — Mylan and Teva Pharmaceuticals (TEVA) — a big step closer to selling lower-cost versions of a product that generated nearly $1.5 billion in sales last year. For now, though, the companies must first win regulatory approval and, meanwhile, battle in court still more since Allergan plans to appeal. And this will take months to resolve, stretching well into next year.
In reaching his decision, however, U.S. Circuit Judge William Bryson also expressed skepticism about a contentious transaction that Allergan used to shield Restasis from competition — the recent transfer of six patents to the St. Regis Mohawk tribe. The company took this step because the tribe has sovereign immunity from another type of patent challenge called Inter Partes Reviews.
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