Drugmaker's Strategy To Use Tribe's Sovereign Immunity To Avoid Generics Competition Draws Scrutiny

The Supreme Court will be asked to rule on a deal between Allergan and the Saint Regis Mohawk Tribe that some consumer groups see as an abuse of the patent system with the intention of limiting market competition. So far, the drugmaker has not been successful in arguing the case that it's protecting its intellectual property. Meanwhile, the deal is likely to be front-and-center when Congress, which has just announced a broad investigation into drug prices, looks at patents' role in high costs.

The New York Times: Indian Tribe Joins Big Pharma At The Supreme Court, Defending A Lucrative Deal

When a pharmaceutical company sold its patent rights for a blockbuster drug to an Indian tribe 16 months ago, stymied competitors and consumer groups condemned the move as a flagrant abuse of the patent system. This month, the company, Allergan, doubled down, asking the Supreme Court to rule that the Saint Regis Mohawk Tribe can use its sovereign immunity to fend off challenges by makers of low-cost generic copies of the best-selling prescription eyedrops, Restasis. (Pear, 1/26)

CQ: The State Of The Union: Drug Prices

Some of the proposed changes are significant: The administration wants to give state Medicaid programs more flexibility to negotiate with drug companies on prices. A separate Medicare proposal would base the prices of certain drugs on the average prices of the drugs in a group of comparable nations, which the Health and Human Services Department estimates would save $17 billion over a five-year period. In Congress, the atmosphere is conducive to legislating on drug prices. The bill with the most realistic shot at enactment is a bipartisan effort championed by Senate Finance Chairman Charles E. Grassley, an Iowa Republican, that would make it harder for drug companies to block generic competition by refusing to share samples needed for testing. (Siddons, 1/28)

In other pharmaceutical news —

Reuters: Exclusive: CVS To Cover Migraine Drugs From Teva, Lilly; Excludes Amgen

CVS Health Corp, a top U.S. manager of pharmacy benefits, has added new migraine drugs from Teva Pharmaceutical Industries and Eli Lilly and Co to its list of covered drugs, excluding a rival treatment from Amgen Inc, a CVS spokeswoman told Reuters on Friday. CVS's decision represents a setback for sales of Amgen's Aimovig, as many patients who rely on the coverage list will now have easier access to the rival Teva and Lilly drugs. Inclusion on the preferred drugs lists by the largest pharmacy benefit managers (PBMs) and health insurers is seen as critically important for sales of new medicines. (1/25)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.

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