The Coalition for
Affordable Drugs has filed its 16th inter partes
review (IPR) petition, taking aim for a second time at the
Vimovo treatment made by Pozen and sold by Horizon Pharma in
the US. Vimovo is an arthritis pain reliever.
Kyle Bass, who runs hedge fund Hayman Capital, and Erich
Spangenberg, owner of nXn Partners, are behind the coalition.
IP Nav is also involved.
I spoke to Bass last month for our June cover story and he
made very clear that he is serious about taking on
pharmaceutical and biotech companies through Patent Trial and
Appeal Board proceedings and that he will not give up.
You can read the full story, including an analysis of
Bass’s strategy, the response from IP
practitioners and trade groups, and the potential action from
Congress and the Board
here (only available to subscribers and trialists
– you can take out a trial to the site here).
Bass underlined that he is filing merit-based IPRs with the
expectation of seeing the challenge through to a final decision
by the PTAB. Hayman Capital says it will not accept settlement
payments to drop its challenges.
Bass praised the IPR system. "It is very pro-competitive," he
told me. "It was designed to mine-clear patent trolls in the
tech space, and now it is allowing firms like ours to challenge
Pharma and bio patent owners have not taken lightly to
Bass’s provocation. BIO labeled his strategy "a
new door to abuse of the patent system", and accused him of
using PTAB proceedings to short sell stock.
Last week, the PATENT Act was reported to the full Senate
and included a new provision allowed the PTAB to deny petitions
"in the interest of justice". This was likely drafted
with PTAB strategies such as Bass's in mind.
And this week IPO passed
a resolution opposing the use of post-grant proceedings to
manipulate the market.
The resolution said: "IPO believes it is an abuse to file
AIA petitions for post grant proceedings by persons who have a
significant bet against, or short, of the shares of the patent
owners owning the patents challenged in the petitions; now,
therefore, IPO urges the United States Patent and Trademark
Office to use its discretion to deny petitions filed by such
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