PTAB allows Celgene to file for sanctions against Coalition for Affordable Drugs

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

PTAB allows Celgene to file for sanctions against Coalition for Affordable Drugs

The Patent Trial and Appeal Board has authorised Celgene to file motions for sanctions in response to four inter partes review petitions filed by the Coalition for Affordable Drugs, the entity Kyle Bass and Erich Spangenberg are using to challenge pharmaceutical patents

kyle20bass20150.jpg

Celgene requested authorisation to move for dismissal of the petitions as a sanction for abuse of process by petitioner or its real parties-in-interest.

In its rare order granting authorisation to file a motion for sanctions on June 9, the Board said the motion shall be filed on the same day as the preliminary response, if the patent owner elects to file a preliminary response. If the patent owner waives filing of a preliminary response, the motion for sanctions shall be filed no later than the due date for filing the preliminary response in each proceeding. The petitioner will have 10 business days to respond and the patent owner then has five days to file a reply.

The four IPRs were filed on April 23. Patent owners are given three months to file a preliminary response after the filing of a petition, meaning Celgene has until July 22 to file the motion for sanctions.

The Board said: “Our decision was based on a determination that briefing will facilitate development of a complete record and, thereby, will promote the just resolution of the issues raised by patent owner. We emphasised that our grant of authorisation to file a motion for sanctions is not a decision on the merits of patent owner’s allegation of abuse of process.”

The IPRs are four of 16 petitions the Coalition for Affordable Drugs has filed since February.

Bass, who managed hedge fund Hayman Capital, has attracted a lot of attention with his filings, which have prompted accusations that he is merely trying to short sell stock. It is not clear whether the USPTO can intervene to block the petitions. Anyone has standing to file IPRs, but the USPTO can prescribe sanctions for “improper use of the proceeding”.

For an in-depth analysis of The Coalition for Affordable Drugs’ IPR petitions, their chance of success and an interview with Bass, read our "The fine line between abuse and fair use at the PTAB" feature here (subscribers and triallists only).

more from across site and SHARED ros bottom lb

More from across our site

The LMG Life Sciences Americas Awards is thrilled to present the 2025 shortlist
A new order has brought the total security awarded to a Canadian tech company to $45 million, the highest-ever by an Indian court in an IP case
Andrew Blattman reflects on how IP practices have changed and shares his hopes for increased AI use and better performance on the stock market
The firm said major IP developments included advising on a ‘landmark’ deal involving green hydrogen production, as well as two major acquisitions
The appointments follow other recent moves in the European market as firms look to bolster their UPC offerings
Deborah Kirk discusses why IP and technology have become central pillars in transactions and explains why clients need practically minded lawyers
IP STARS, Managing IP’s accreditation title, reveals its latest rankings for patent work, including which firms are moving up
Leaders at US law firms explain what attorneys can learn from AI cases involving Meta and Anthropic, and why the outcomes could guide litigation strategies
Attorneys reveal the trademark and copyright trends they’ve noticed within the first half of 2025
Senior leaders at TE Connectivity and Clarivate explain how they see the future of innovation
Gift this article