Four large U.S. retailers sue Allergan for blocking generics

May 18, 2018

Allergan is being sued by four large U.S. retailers that accused the drugmaker of antitrust violations for trying to stop rivals from selling generic versions of Restasis, its medication to treat dry-eye disease.

Walgreen Co, Kroger Co, Albertsons Cos and HEB Grocery Co said generic Restasis would have been on the U.S. market by May 2014 but Allergan illegally preserved its monopoly by obtaining illegal patents, suing rivals and transferring patents to a Native American tribe.

Sales of Restasis totaled $1.47 billion in 2017, accounting for about 9 percent of Allergan’s $15.94 billion of overall net revenue, reported Reuters.

In January,  Allergan announced plans to cut over 1,000 jobs and eliminate an additional 400 open positions, in an attempt to cut costs in the face of generic competition for Restasis.