Hedge-fund manager Kyle Bass filed a patent challenge late
Monday against Jazz Pharmaceuticals PLC and its narcolepsy drug
Xyrem.
The challenge was the latest salvo in Mr. Bass's new battle
against pharmaceutical companies that he believes host spurious
patents to keep drug prices artificially high. The challenge was
filed in the name of the Coalition for Affordable Drugs, an
organization partly controlled by Mr. Bass.
Shares of Jazz Pharmaceutical rose 0.4% to $168.70 in early
trading on Tuesday after falling 2.9% in premarket trading. The
company didn't immediately respond to a request for comment.
Xyrem had sales of $778.58 million last year, which represented
66.4% of the company's total revenues.
Last week, Mr. Bass filed challenges against patents for two
Shire drugs--the Lialda medicine for ulcerative colitis and the
Gattex treatment for short bowel syndrome. Earlier, he challenged a
patent that Acorda Therapeutics holds on its multiple sclerosis
drug Ampyra. Acorda shares dropped dramatically after the
challenges were filed.
Mr. Bass's more than $2 billion Hayman Capital Management L.P.
stands to profit if the patents are invalidated, as the firm has
placed trades to bet on and against shares of companies involved in
the disputes, people familiar with the firm said.
Write to Rob Copeland at rob.copeland@wsj.com and Joseph Walker
at joseph.walker@wsj.com
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