Gambling, drugs, and a smart lawyer

If Albert Einstein was right and “creativity is intelligence having fun” then there is one happy lawyer at Allergan. Last week Allergan, using a move John Grisham would be proud of, transferred its patents on a best-selling eye drug (Restasis) to the Saint Regis Mohawk Tribe in New York. The tribe will then lease the patents back to Allergan. Yep, you read that right. Not bad, first gambling, now patent laundering (you heard that phrase here first). Allergan will pay the tribe $13.75M upfront plus $15M annually as long as the patents remain valid. FYI, Restasis sales were $1.4 billion last year. Obviously, the Mohawk Tribe has no reservations about the transaction. If we are being honest, it’ll be kind of funny when Indian generics companies start suing Indian tribes.