[Ip-health] Reuters: U.S. hedge fund plans to take on big pharma over patents

Thiru Balasubramaniam thiru at keionline.org
Wed Jan 21 04:44:47 PST 2015

U.S. hedge fund plans to take on big pharma over patents
Wed, Jan 7 2015

OSLO, Jan 7 (Reuters) - U.S. hedge fund manager Kyle Bass, who won fame for
predicting the subprime mortgage crisis in 2008, plans to take on some of
the world's biggest drug producers by challenging the patents of their top
brands, he said on Wednesday.

Bass, the founder of Dallas-based Hayman Capital Management, L.P., said
some drug firms were hanging onto patents in questionable ways and he
planned to take around 15 firms into a so called Inter Partes Review (IPR)
process created by the America Invents Act. in 2012.

"We are going to challenge and invalidate patents through the IPR process
... (and) we are not going to settle," Bass said in a presentation in Oslo,
Norway's capital.

"The companies that are expanding patents by simply changing the dosage or
the way they are packaging something are going to get knee capped," he said.

Bass said the firms he planned to challenge had a combined market
capitalisation of $450 billion and if he succeeded that could halve,
benefitting his investments and reducing medicine prices in the United

"This is going to lower drug prices for Medicare and for everyone," he said.

Bass did not name any targets and also declined to elaborate on how he
planned to make a financial gain from the challenges. He also declined to
give details on his investment position.

The Inter Partes Review was introduced by the U.S. government as a quicker
and more effective method for challenging existing patents. (Reporting by
Joachim Dagenborg,; Writing by Balazs Koranyi
Editing by Mark Potter)

More information about the Ip-health mailing list