Up until this time Kyle Bass was best known as a hedge fund manager, but with this attempt to eliminate some name brand drug patents. Bass organized and represents a coalition of concerned parties who are in favor of affordable drugs. They are specifically after the drug Tecfidera dimethyl fumarate which is used in the treatment of multiple sclerosis.
The group went before the Patent Trial and Appeal Board (PTAB) and it seems like the prognosis of demonstrating the claims of the patent can’t be patented is pretty likely. Kyle Bass is challenging the use of 480 Mg of dimenthyl furnarate to treat MS as is mentioned on U.S. Patent No. 8,399,514. The patent is due to run out in 2028, but the PTAB found the evidence presented by the group very convincing to treat autoimmune diseases they needed to arrive at the appropriate dosage of the drug.
This is not the first attempt that Kyle Bass has made in this arena. In fact last year the PTAB denied a separate petition filed by Bass last year. That only led the group to ramp up their game and build a case that was far more compelling and will have a larger chance of success. Biogen is the company that currently holds the patent and is under fire from the Bass coalition.
Hayman Capital Management, L.P. is the company that Kyle Bass founded. Based in Dallas, Texas his hedge fund has benefited significantly from his skill in reading financial markets. Bass successfully profited from his keen prediction that he could guess correctly the way that the subprime mortgage crisis in 2008 would affect the economy. He was able to do this by buying credit default swaps on subprime securities. Various investment banks issued the subprime securities and Bass read it right and profited for himself and his investors.
The European sovereign-debt crisis is another area that Bass properly predicted the economic ramifications that would happen. His expectations of economic trends in Argentina and Japan have also allowed Bass to build a profitable hedge fund. However there is plenty of criticism of some of Bass’ ethical choices when supporting certain leadership groups that do not practice human rights.
When it comes to Kyle Bass and his patent elimination, things seem to be looking good. The European Patent Office revoked the EU Patent held by Biogen on 480 mg doses of dimethyl fumarate, so it may be only a matter of time until the U.S. follows suit. Biogen has stated that it will appeal the decision but the outlook does not look bright for them. The Coalition for Affordable Drugs, which Kyle is running has filed 33 petitions against the same patent as of October of 2015.