Kyle Bass Targets Patent of Jazz Pharmaceuticals Apr 8 2015 | 12:02pm ET Hayman Capital Management boss Kyle Bass is at it again, challenging the patent of another pharmaceutical company. This time, the target is Jazz Pharmaceuticals and its narcolepsy drug Xyrem. Bass has charged the pharmaceutical giant of owning a spurious patent that artifically inflates its drug price for an extended period of time. Bass' affiliate organization, Coalition for Affordable Drugs, filed an Inter partes review on Xyrem, one of Jazz Pharmaceutical's best selling drugs. This isn't his first target over patents. Last week, he took aim at Shire Plc and two of its bowel drugs, Lialda and Gattex. Combined, the two drugs earned 14% of Shire's 2014 revenues. On Monday, Shire has rebuffed claims by Hayman Capital Management that it lacks grounds to maintain patents on its Gattex and Lialda medications. Shire said in a statement that its patents “protect the innovation and value Shire brings to patients who benefit from these important medicines.” In February, Bass challenged Acorda Therapeutics on five patents covering its multiple sclerosis drug, Ampyra. An annoucement of each patent challenge drove down Acorda's stock price. Although it is unclear why Bass has been taking these actions, many speculate that it is part of a broader short strategy.
So the guy who made his fame and fortune on credit default swaps is now going to get to the bottom of pharma patent protection? What a great human. Is it possible that he can profit from this?