Shire (maker of Xiidra) is suing Allergan (maker of Restasis).
Shire says that Allergan has blocked access to Xiidra for patients with Part D Medicare plans keeping a nearly $1.5 billion monopoly on the Medicare Part D market.
How could they do that?
According to Shire, Allergan blocked access by “employing egregiously anticompetitive and unlawful tactics.”
The story goes, Shire offered deep discounts on Xiidra in a bid to be covered on Medicare Part D plans but were denied due to Allergan’s “bundled discounts and exclusive dealings” among other things. Shire says they never had a level playing field.
What does Allergan say?
They say they haven’t broken the law and have abided by all the Medicare Part D guidelines. Also, they say this competition is actually driving down pricing which is great for the patient. (via)