Celgene Will 'Vigorously' Defend IP Amid Report Kyle Bass Patent Challenge Could Prove Successful

Shares of Celgene Corporation(NASDAQ: CELG) on Tuesday plunged to a mid-day low of $121.41. The move came in response to a Bloomberg report the U.S. Patent & Trademark Organization may soon be reviewing a patent challenge brought on by Kyle Bass's Coalition for Affordable Drugs related to the company's Revlimid.

The Bloomberg story suggested a source at the U.S. PTO indicated a "reasonable likelihood" Bass's Coalition would see success in the patent challenge.

A spokesperson from Celgene, when reached out to by the Benzinga Newsdesk, offered the following statement:

"This action by PTAB is one step in a process that will now continue over the next year. We remain confident in the strength of our patent estate, and we plan to defend our intellectual property vigorously."

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The stock, which had been trading in positive territory throughout most of Tuesday's session, briefly dipped to trade down as much as 1.9 percent. Since the initial knee-jerk move lower, Celgene shares have retaken gains and are now trading up about 1 percent to $125.11. The stock price remains below the level it was trading around before the rumor hit newswires.

Year-to-date, Celgene shares are up about 12 percent.