Odd Lots Podcast: Could a Hedge Funder Solve America's High Cost of Prescription Drugs?

Where finance and intellectual property intersect.

Why Do Drug Prices Keep Going Up?

Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance, and economics.

In the new edition, we talk about a fascinating intersection between the worlds of finance, health care, politics, and intellectual property and ask whether a profit-hungry hedge fund could end up forcing reform on the U.S. pharmaceutical industry.

Guan Yang, an occasional Bloomberg View contributor, tells us about Kyle Bass, the manager of Hayman Capital. Bass is engaged in a trade that sees the hedge funder betting against the shares of certain drug companies and then challenging their pharmaceutical patents in court.

Bass stands to make money if he can overturn the patents of companies that are highly dependent on the rights to certain drugs and send their stock plunging. His efforts could also, in theory, lead to lower prescription drug prices at a time when the high cost of U.S. medical care is under intense scrutiny. And yet Bass's strategy is nothing if not controversial.

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