Since inaugurating this website, we’ve tried to keep up with the always interesting activities of Cristina Kirchner’s favorite hedge-fund manager, Dallas’s own Kyle Bass – who’s routinely praised her corrupt, incompetent Marxist regime and slammed his fellow hedgies for expecting her to pay the money she owes them. We’ve seen him defend General Motors’s cover-up of a faulty-airbag case by blaming the passengers who lost their lives as a result of the defect.
Most recently, we looked at his newest money-making scheme. Taking advantage of a new process called “inter partes review” (IPR), he challenges drug companies’ patents via a newly formed front group called the Coalition for Affordable Drugs – and, at the same time, short-sells those companies’ stocks. It’s a sure-fire gimmick: the minute a patent challenge becomes public, the firm’s stock price plummets and Bass pockets a few million dollars. Meanwhile, of course, every new patent challenge further weakens the motivation of pharmaceutical firms to invest in product development – and thus places at risk the welfare (and perhaps even the lives) of heaven knows how many sick people who are in desperate need of miracle drugs.
Bass, who’s constantly trumpeting his own moral superiority to (for example) the “vulture” hedge funds that actually expect Argentina to pay its debts, claims that this slimy pharma hustle of his was prompted by the most ethical of motives: he wants to break up monopolies on certain medicines and thus bring down prices. But the pharmaceutical industry isn’t buying it: as James C. Greenwood, head of the BIO trade association put it, “There’s nothing in this man’s history to suggest he has any interest in lowering health-care costs.” Another observer, intellectual-property expert Scott McKeown, calls Bass a “patent troll.”
Bass, McKeown recently wrote, “is certainly not embarking on this multi-million dollar venture to help Medicare patients. Instead, he is simply hoping to spook financial markets to his benefit.”
At least some folks on Capitol Hill agree, and are doing their best to stop Bass in his tracks. On June 10 came the news that the House Judiciary Committee, in response to Bass’s activities, was “considering revisions to a pending bill” that would “require any party seeking an inter partes review…of an existing patent to certify that it does not have any financial interest in a drop in the patent owner’s securities.” On June 22, it was reported that the Patent Trial and Appeals Board (PTAB) had agreed to consider a motion by Celgene, one of the pharma firms targeted by Bass, to sanction the Coalition for Affordable Drugs for abusing the IPR process. And on June 26, the Wall Street Journal added a scintillating new detail:
…according to Celgene, Bass had committed extortion, threatening to challenge Celgene’s patents unless the firm paid him off.
Oh, well. We already knew how chummy Bass is with Cristina Kirchner and her crooked crew. Why should we expect his behavior to be any less morally reprehensible than theirs?