UPDATE: Allergan's controversial patent agreement with an American Indian tribe is worrying investors
By Emma Court
CEO's 'social contract' has been questioned due to an unorthodox patent agreement with a New York state American Indian tribe
Allergan PLC's unusual patent agreement with a New York state American Indian tribe attracted criticism from observers earlier this month.
Now the drugmaker (AGN) is facing another round from an unexpected corner: Investors are concerned about what the agreement means for the company.
Some investors "are currently unable to invest in AGN as their firm reviews whether an investment in AGN would meet their standards for socially responsible investing," Credit Suisse analyst Vamil Divan said.
Others "view the agreement as a sign that AGN is not confident in winning the ongoing District Court case around these patents," Divan said, referring to patent litigation that is separate from the recent agreement.
Allergan's agreement with the New York-based Saint Regis Mohawk Tribe aims to protect its dry eye medication Restasis from generic competition. State entities like an American Indian tribe are protected from civil litigation, which experts say could reasonably include patent challenges made through the U.S. Patent and Trade Office's inter partes review process.
Read: Allergan has made an unorthodox agreement with an American Indian tribe to fend off competition for its key product (http://www.marketwatch.com/story/allergan-has-made-an-unorthodox-agreement-with-an-american-indian-tribe-to-protect-a-drug-patent-2017-09-08)