In a closely watched case, Allergan (AGN) won a lawsuit in which it used a novel legal theory to blunt competition from a compounding pharmacy, although the victory came at a price.
Here’s the backstory: The drug maker accused Imprimis Pharmaceuticals of falsely advertising compounded versions of its eye treatments for cataracts and glaucoma because the smaller company failed to follow federal regulations.
Specifically, Allergan argued that its competitor’s products were not legally compounded, but instead were mass-manufactured formulations of new drugs not approved by regulators. The bigger drug maker further claimed it lost business because doctors may have believed the Imprimis medications were, in fact, approved.
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