HEDGE FUNDS SHOULD BE ABLE TO CHALLENGE PATENT VALIDITY USING INTER PARTES REVIEW DESPITE MIXED MOTIVES

On Feb 10 and Feb 27, 2014, The Coalition for Affordable Drugs ("CFAD") filed petitions with the US Patent and Trademark Office ("USPTO") challenging the validity of two patents covering Ampyra, a prescription drug that improves multiple sclerosis patients' ability to walk....

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Bibliographic Details
Published in:Houston law review 2017-04, Vol.54 (5), p.1315
Main Author: Carter, Jennifer Robichaux
Format: Article
Language:English
Subjects:
Biotechnology
Hedge funds
Prescription drugs
Validity
Online Access:Get full text
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Summary:On Feb 10 and Feb 27, 2014, The Coalition for Affordable Drugs ("CFAD") filed petitions with the US Patent and Trademark Office ("USPTO") challenging the validity of two patents covering Ampyra, a prescription drug that improves multiple sclerosis patients' ability to walk. Acorda Therapeutics, which owns the two patents, watched its stock drop 9.7% on February 10 and 4.8% on February 27 in reaction to news of CFAD's patent challenges. The patent challenge and ensuing stock drop comprise the initial steps of a new investment strategy developed by hedge fund manager Kyle Bass. Mr Bass created CFAD to search for potentially invalid patents and file petitions requesting the USPTO to reassess the validity of these patents in an administrative process called inter partes review. Here, Carter uncovers the merits of the biotechnology sector and CFAD's arguments, ultimately concluding that Congress should not create any legal barriers that would prevent hedge funds from challenging the validity of biotechnology patents.
ISSN:0018-6694