Shire Presses Back Against Hayman Capital Management

Apr 6 2015 | 10:35am ET

Shire Plc has rebuffed claims by Hayman Capital Management that it lacks grounds to maintain patents on its Gattex and Lialda medications. 

Shire announced in a statement that its patents for the two bowel medicines “protect the innovation and value Shire brings to patients who benefit from these important medicines.”

Hayman Capital, a Dallas-based hedge fund, filed petitions last week with the U.S. Patent and Trademark Office (USPTO), while accusing the rare disease specialist of abusing the patent system to hike drug prices and keep low-cost or generic alternatives off the market. 

“A small minority of drug companies are abusing the patent system to sustain invalid patents that contain no meaningful innovations but serve to maintain their anti-competitive, high-price monopoly to the detriment of Americans suffering from illness,” Hayman Capital’s founder Kyle Bass said told the Wall Street Journal last week. 

Lialda and Gattex comprised 12% of Shires's 2014 revenue.

This isn't Bass' first campaign against drug makers. In February, the hedge fund Bass, challenged two of five patents covering multiple sclerosis drug Ampyra. That durg which accounts for 91 percent of the revenue of Acorda Therapeutics Inc.

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