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Hedge Fund Manager Battles Pharma Over "BS" Patents

Aug 13, 2015

Business Insider

J. Kyle Bass, founder of Hayman Capital Management, has filed 18 inter partes review (IPR) petitions through his newly formed Coalition for Affordable Drugs, challenging the validity of various drugmakers' patents.

In an attempt to end what he considers to be "pay for delay" agreements that prevent lower-cost generic drugs from entering the market, Bass is challenging patents to influence a stock price. IPR challenges are evaluated by a panel of three patent judges who use a broader criteria than the courts when deciding whether patents should be invalidated, this making it easier to strike down patents.

Earlier this year, at a conference in Copenhagen, Bass had referenced pharma companies' "BS patents" during his speech.

The Coalition filed five IPRs against Celegene's drug patents, and has Celegene retaliated by filing a motion with the USPTO for sanctions on a claim of "abuse of process." IPRs have also been filed against Jazz Pharma, Shire, and Acorda Therapeutics. 

Read the Business Insider piece