Janney Sees Potential DepoMed (DEPO) Court Decision Delay
Get Alerts DEPO Hot Sheet
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Join SI Premium – FREE
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.
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 $24.40 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
- Piper Sandler Downgrades Magnolia Oil & Gas Corp. (MGY) to Neutral
- Recent IPO Top Wealth Group (TWG) trading 90% higher
Create E-mail Alert Related Categories
Analyst Comments, FDA, Hot Comments, Litigation, Trader TalkRelated Entities
Janney Montgomery ScottSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!