News & Knowledge

Add to Portfolio

VLP Partner Jeremy Cubert Quoted in the Law360 Article “Hedge Fund Drug Patent Challenges In Doubt After Bass’ Test”

Posted on Apr 1, 2017 in News by Jeremy A. Cubert

VLP Partner Jeremy Cubert was quoted in the Law360 article “Hedge Fund Drug Patent Challenges In Doubt After Bass’ Test.”

The article reported on a campaign against drug patents led by hedge fund manager Kyle Bass and his colleague, Erich Spangenberg. The Coalition for Affordable Drugs (CFAD), was created by the two men in order to spearhead the effort to take down drug patents they saw as weak or abusive.

The article reported that the CFAD filed 34 petitions challenging the validity of 28 patents in America Invents Act reviews. At least some challenged claims were invalidated in nine of those cases. The PTAB declined to review or upheld the patents’ claims most other times.

The article sited a report by nXn Partners LLC, the company led by Bass and Spangenberg, claiming the coalition’s overall success rate as “well beyond” the averages of other petitions filed at the PTAB during the same time frame. But the article noted that outside observers said there is no indication the campaign was able to advance Bass’ ultimate goal: making drugs cheaper and lowering stock prices.

In noting that observers had some mixed feelings about whether there would be other hedge fund IPR challenges to drug patents. Mr. Cubert told the reporter that he wouldn’t be surprised to see someone take a shot, in part because the funds can maintain they’re “wearing the white hat.”

He added, “In an environment where people are focused on controlling health care costs, they may not get as much pushback.”

This article is available online by subscription only. Click here to access the website.