The U.S. would pay an extra $10.7 billion without generic Allergan drug

Ever since Allergan (AGN) struck an unusual deal last month to sell patents for the Restasis eye treatment to a Native American tribe, the drug maker has been accused of using a clever legal tactic to forestall low-cost generic competition to a big-selling product.

Now, one organization is attempting to quantify the potential cost to the U.S. health care system, and the number is a whopper — Americans would pay an extra $10.7 billion if a generic version of Restasis is unavailable between 2018 and 2024, when the existing patents on the medicine are due to expire.

“It’s a big number, isn’t it?” said Dan Kistner, senior vice president of pharmacy solutions, at Vizient, a group-purchasing organization for more than 3,000 hospitals around the U.S., which rummaged through various data sources to work up this estimate.

STAT+ Exclusive Story

Already have an account? Log in

This article is exclusive to STAT+ subscribers

Unlock this article — plus in-depth analysis, newsletters, premium events, and networking platform access.

Already have an account? Log in

Already have an account? Log in

Individual plans

Group plans

Monthly

$39

Totals $468 per year

$39/month Get Started

Totals $468 per year

Starter

$30

for 3 months, then $39/month

$30 for 3 months Get Started

Then $39/month

Annual

$399

Save 15%

$399/year Get Started

Save 15%

11+ Users

Custom

Savings start at 25%!

Request A Quote Request A Quote

Savings start at 25%!

2-10 Users

$300

Annually per user

$300/year Get Started

$300 Annually per user

View All Plans

Get unlimited access to award-winning journalism and exclusive events.

Subscribe

Log In