Aegis Capital Sees Buying Opportunity in Alder Biopharma (ALDR) Following EPO Ruling-Related Dip
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Aegis Capital affirms Alder Biopharmaceuticals (Nasdaq: ALDR) at Buy with a price target of $41 after the EPO maintained claims related to CGRP use in Migraines.
Analyst Difei Yang sees the recent pullback in ALDR shares as a buying opportunity. The analyst commented,
The EPO’s ruling is certainly a setback in the intellectual property legal proceedings of Alder and Eli Lilly, however it is also, in our view, a buying opportunity as the valuation impact to Alder is minimal; an approximate $2 per share decrease from our estimated price target. This reasoning stems from our opinion that there will be limited, if any, carry over to the US, where the large bulk of the future value of ALD-403 is based.
EPO’s Technical Board of Appeal might not uphold initial ruling. The original claims contained in Patent No. 1957106 B1 were, in our opinion, undoubtedly too broad and not in-line with the requirements set forth by the European Patent Convention for patentability. As such, we believe there is considerable uncertainly surrounding whether or not the EPO's Technical Board of Appeals will uphold the OD's initial ruling. Because of the substantial differences in the patent systems between the US and the EU, we do not expect the read-through of European decisions to impact the US business.
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