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 2026

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

Judge Alan Albright is to leave his role at the Western District of Texas, and could return to private practice
Stobbs has successfully seen off a contempt of court application filed against the firm and two of its lawyers
After almost a quarter of a century, Marshall Gerstein has a new managing partner
Abbott winning another round against Sinocare and Menarini, and 'long arm' clarification on the UK's position within the UPC, were also among major developments
Maria Peyman, head of IP at Birketts, explains why the firm is adopting a ‘seamless approach’ for clients by integrating two of its practice areas
Matthew Swinn, who leads the firm’s IP practice, discusses why Mallesons is well-placed to remain a major IP force
Lawyers at A&O Shearman analyse developments regarding UPC’s long-arm jurisdiction, including its scope and jurisdictional limits
Michelle Lee discusses reaching milestones at the USPTO, AI’s role in legal work, and how to empower women in tech and IP
Executive chair Matt Dixon, who reveals a new associate hire, says the firm wants to offer a realistic pathway to partnership while avoiding the ‘corporate machine’ route
Mayer Brown’s role in cardiovascular technology dispute reflects how firms are pursuing precedent-setting cases to try and guide AI and patent law
Gift this article