Janney Montgomery Scott Reiterates Buy as Court Rules in Favor of Depomed (DEPO)

October 3, 2016 7:55 AM EDT
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Price: $18.46 --0%

Rating Summary:
    10 Buy, 4 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 12 | Down: 22 | New: 54
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Janney Montgomery Scott reiterated a Buy rating on DepoMed Inc (NASDAQ: DEPO), and raised the price target to $31.00 (from $28.00), following a court ruling in favor of the company. The Court issued an Order in favor of DEPO in its patent litigation against and secures Nucynta through 2025.

Analyst Ken Trbovich commented, "Last Friday, near market close, the Court issued an Order in favor of DEPO in its patent litigation against all three generic filers for DEPO's Nucynta franchise. The Court upheld the validity of DEPO's formulation (2023) and polymorph (2025) patents, and found all three filers infringed both patents. The third patent (method of use expiring in 2028), was found to be valid; however, two of the three filers do not infringe this patent. While the Court's decision is subject to appeal to the Federal Circuit Court, a reversal on appeal is typically not likely. As a result, the patents on Nucynta are expected to effectively protect the franchise from generic competition through Dec. 27, 2025. We reiterate our Buy rating and raise our fair value estimate from $28 to $31."

For an analyst ratings summary and ratings history on DepoMed Inc click here. For more ratings news on DepoMed Inc click here.

Shares of DepoMed Inc closed at $24.97 yesterday.

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