Hedge Fund's AIA Attack Should Have Biotech Cos. Wary

Law360, New York (March 9, 2015, 2:16 PM EDT) -- A hedge fund's attempt to invalidate Acorda Therapeutics Inc. drug patents under the America Invents Act as an investment strategy to lower the company's stock price should have biotechnology companies on alert for similar challenges, attorneys say, although the tactic makes financial sense only in rare cases.

An organization affiliated with Hayman Capital Management LP filed inter partes review petitions on Feb. 10 and Feb. 27 challenging the validity of two patents on Acorda's multiple sclerosis drug Ampyra, which accounts for 93 percent of the company's revenue.

The fund has reportedly taken a short position on Acorda's stock and stands to...

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