Senators want probe of Allergan transfer
deal with tribe: letter
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[September 28, 2017]
By Jan Wolfe
(Reuters) - Four U.S. senators have asked
the Senate Judiciary Committee to launch an investigation into a deal
drugmaker Allergan Plc <AGN.N> struck with a Native American tribe to
protect some of its patents from generic challenge, according to a
letter seen by Reuters.
Democrats Maggie Hassan, Sherrod Brown, Bob Casey and Richard Blumenthal
in the letter to Judiciary Committee Chairman Chuck Grassley and Ranking
Member Dianne Feinstein on Wednesday called Allergan's deal "a blatantly
anti-competitive attempt to shield its patents from review and keep drug
prices high."
Allergan said on Sept. 8 that it was transferring patents on its dry eye
medication Restasis to upstate New York's Saint Regis Mohawk Tribe,
which agreed to exclusively license them back to the company in exchange
for ongoing payments.

Allergan said in an emailed response to a Reuters request for comment
that it met last week with the staffs of Senators Brown and Hassan to
provide detailed briefings on the agreement.
"We would welcome the opportunity to provide additional briefings for
these Senators, as well as the opportunity to brief Senators Casey and
Blumenthal, and answer any questions they may have,” Allergan said in
the email.
The tribe and company have said that the tribe's sovereign status
shields the patents from review by the U.S. Patent Trial and Appeal
Board, an administrative court empowered to invalidate patents.
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The Allergan logo is seen in this photo illustration November 23,
2015. REUTERS/Thomas White/Illustration/File Photo

On Friday, the tribe asserted this immunity in an ongoing
administrative proceeding brought by generic drugmakers led by Mylan
NV <MYL.O>, which are seeking to invalidate Allergan's patents to
introduce cheaper versions of Restasis to the market.
Mylan has called Allergan's deal with the tribe a "sham transaction"
and said the tribe should not be allowed to invoke immunity to
prevent administrative review.
Some patent lawyers have noted that the patent board has recognized
the immunity of state entities like public universities, and tribal
immunity is considered to be an even stronger shield.
Generic drug companies often seek to challenge brand-name drug
patents through administrative proceedings, which are cheaper and
faster than federal court litigation. Allergan has said it would not
invoke the tribe's immunity in federal court.
(Reporting by Jan Wolfe; Editing by Anthony Lin)
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