Janney Sees Potential DepoMed (DEPO) Court Decision Delay
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Janney Montgomery Scott analyst Ken Trbovich said with the Court's self-imposed Sep. 30th deadline for DepoMed (NASDAQ: DEPO) patent litigation fast approaching, there is rising risk of delay. While the analyst remains positive on the stock overall, he warns a delay may lead to downside pressure on the stock.
Trbovich commented, "Investors have waited for four months for the District Court decision in DEPO's patent litigation with generic filers; however, with the Court's self-imposed Sep. 30th deadline fast approaching, there is rising risk of delay. We see a delay as a possibility because the judge in this case was slow in issuing the Markman Decision in February, and waited until nearly reaching the expiration of the initial 30-month stay before issuing an order to extend the stay in May. DEPO continues to expect a final, written decision from the Court on, or before, Sep. 30th. While we still like the prospects for a positive decision to increase the perceived value of DEPO's Nucynta franchise in the public markets, and DEPO's relative attractiveness as a takeout candidate, we caution investors that a delay may lead to downside pressure on the stock."
The firm maintained a Buy rating and fair value target of $28.
Shares of DepoMed Inc closed at $24.40 yesterday.
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