Thus Native Americans protect pharmaceutical patents
To save its blockbuster drug from a patent review, Allergan has engineered a ploy to switch the license to the Saint Regis Mohawk tribe in upstate New York
Using Native American tribes as via is Allergan's new strategy to circumvent patent disputes. An article that appeared last September 8 in the New York Times in fact, he says that the company to protect its successful drug Restasis (a cyclosporine-based eye drop) from a license dispute, has set up an ingenious ploy never used until now: transfer the patent to the Saint Regis Mohawk tribe in upstate New York, a recognized sovereign tribal government. According to the agreement Allergan will give the tribe $13.75 million, which in exchange has requested sovereign immunity to dismiss the ongoing review of Restasis' patent by the United States Patent and Trademark Office. The tribe will then surrender the license to Allergan and receive $15 million annually in royalties for as long as the patent runs.
The news of the expedient spread quickly in the pharmaceutical world, suggesting that other companies could soon copy the strategy to deal with the patent review process not loved by companies. If Allergan manages to keep its patent, "we will likely see many pharmaceutical companies filing their patents with Indian tribes," Bernstein analyst Ronny Gal explained in a video message to investors.
Denise Bradley, a spokeswoman for Teva Pharmaceuticals, one of the generic companies testing Restasis' patent, described the deal as “a new and unusual way for a company to try to delay access to high-quality and more affordable generic alternatives. Teva is now interested in seeing what regulatory agencies' comments on this strategy will be.”
To learn more, continue reading in the New York Times
Note: pictured above Dale White general counsel of the Mohawk Tribe of Saint Regis
