Shire Sues Allergan, Claiming Bundling Tactics Block Restasis Competitors

October 6, 2017: By Jon Swedien

legal issuesShire filed a lawsuit against Allergan on Oct. 2, alleging its competitor in the dry eye market has used an “anticompetitive scheme” to block or limit Xiidra’s entry into Medicare Part D prescription drug plans.

In the suit, Shire argues Allergan uses bundled discounts—which leverage Allergan’s glaucoma medications—as well as exclusive deals and other methods to keep Xiidra’s market share in Medicare Part D plans to 10 percent, compared with Restasis’ 90 percent. Conversely, Xiidra has achieved a 35 percent share in commercial drug plans since its US FDA approval in July 2016, according to Shire’s suit.

Allergan spokesman Mark Marmur told Reuters the lawsuit has no merit, and the company complies with Medicare procedures.

Shire filed the complaint in the US District Court of New Jersey.

In the complaint, Shire states one Medicare prescription drug plan told the company: “You could give [Xiidra] to us for free, and the numbers still wouldn’t work,” because of the bundled package Allergan offered.

Shire claims in the suit that patients can appeal for Xiidra when their plan only offers Restasis, but this increases their copays by two to five times.

In addition, Shire said that, when it has gotten Medicare plans to offer Xiidra, it’s often as a “non-preferred” item, which also increases copays by two to five times.

Shire argued that Allergan’s methods do not save patients any money because Restasis must often be used in conjunction with a topical prescription steroid, while Xiidra has the same list price as Restasis and does not require the use of any additional drugs.

Shire claimed that Allergan’s methods also hurt consumers because Restasis is approved to treat a limited subset of dry eye patients, while Xiidra is approved to treat all of the signs and symptoms of dry eye and can be prescribed to treat more patients.

Need Deeper Analysis? Sign up for Market Scope's monthly newsletter to get in-depth coverage of the ophthalmic market, including quarterly procedure volumes based on survey data and meeting coverage from around the world.

Recent Ophthalmic News

Imprimis Offers Compounded Alternative to Restasis for Dry Eye

US District Court Invalidates Four Restasis Patents

BioTime Prices $25 Million Public Offering of Common Stock

Gemini Completes $42.5 Million Series A Financing for Dry AMD Treatment

BIOPHYTIS Raises €10.4 Million to Develop Anti-Aging Drugs, One for Dry AMD

Amydis Receives $530 Thousand NIH Award to Advance Ophthalmic Diagnostic Probes

Realm Announces Completion of $26 million Private Placement

Sight Sciences Secures $10 Million in Oversubscribed Series C Financing

Aerpio Names Stephen Hoffman CEO; Founder Joseph Gardner Remains President

FDA Advisory Panel Recommends Aerie’s Rhopressa for Glaucoma Patients

FDA Panel Unanimously Backs Spark’s Luxturna as Retinal Gene Therapy

PanOptica Secures $11 Million to Advance Topical Anti-VEGF Eye Drop for Neovascular AMD

Nicox and pSivida to Collaborate to Develop a Sustained Release Drug to Lower IOP

Azura Nets $16 Million in Series B Funding for Dry Eye Treatment

Alcon’s AcrySof Intraocular Lens Reaches 100 Million Implants

Notal Vision’s ForeseeHome Reaches Milestone of 3 Million Tests

FDA to Review Spark’s Retinal Gene Therapy Candidate Oct. 12

Alcon’s AutonoMe IOL Injector Gains CE Mark Approval

Shire Sues Allergan, Claiming Bundling Tactics Block Restasis Competitors

Allergan Decries ‘Unfair’ Patent Challenge Process as US House Launches Probe of Tribe Deal

Coming soon

2017 Refractive Surgery Report: A Global Market Analysis for 2016 to 2022