Morning Briefing
Summaries of health policy coverage from major news organizations
Shire Files Anti-Trust Suit Against Allergan: 'There Was Not A Level Playing Field'
The Wall Street Journal: Shire Alleges Allergan Blocked Drug From Medicare Contracts
Shire PLC filed an antitrust suit against Allergan PLC, alleging Allergan’s contracts with Medicare Part D drug plans for its Restasis eye drops effectively blocked access to Shire’s rival drug. The complaint, filed Monday in federal court in Newark, N.J., says Shire offered steep discounts in bids to secure insurance coverage of the company’s dry-eye drug Xiidra but the Part D plans refused, due to Allergan’s “bundled discounts, exclusive dealing” and other tactics. (Rockoff, 10/2)
Stat: 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. (Silverman, 10/2)
