Kyle Bass responds to criticisms
Virginia | 17 August 2015

An economic motive is not an abuse of the inter partes review process, according to the head of hedge fund Hayman Capital, manager Kyle Bass.

Bass filed an opposition on 11 August against biotechnology company’s Celgene’s claims that his pursuit of drug patent invalidations through the US Patent Trial and Appeal Board, under the banner of the Coalition for Affordable Drugs, amounts to an “abuse of the system”.

He argued his interests are aligned with those of patent holders and Celgene’s argument is in conflict with the US Supreme Court, which found “it in the public’s interest for economically motivated actors to challenge patents”.

Critics claim Bass has targeted drug patents so that he can profit from resulting stock price falls. Hedge funds routinely practice ‘short selling’, where they buy back borrowed shares at a lower price than they sold them for, following a drop in price.

“At the heart of nearly every patent and every IPR, the motivation is profit,” he argued. “Celgene’s motive is to profit from consumer from drug sales. Revlimid prices exceed $580 million per pill.”

He sought to rubbish the biotech firm’s claims, with the opposition, stating: “Apart from [Celgene’s] misinformed suggestions that short selling is ‘nefarious’, it has not identified any illegal acts or perversion of this process.”

Bass requested the sanctions against him be dismissed. His Coalition for Affordable Drugs has also sought invalidate patents owned by Acorda Therapeutics, Horizon Pharma and Shire, among others.

Author: Tammy Facey

More IPPro Life Sciences | latest news
AstraZeneca enters China with Plendil
Hogan Lovells boosts capabilities in Japan
Morgan Lewis bags four from K&L Gates
Cobra and CPI enter £1.8 million project
Doctors Without Borders urges lower vaccine prices
IPPro Life Sciences


Copyright (C) 2013 Black Knight Media Ltd. All rights reserved. No reproduction without prior authorization