Wells Fargo Comments on Enzymotec (ENZY) Settlement Developments

April 2, 2014 11:04 AM EDT Send to a Friend
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Enzymotec Ltd. (Nasdaq: ENZY) announced Tuesday that following a mediation process with Neptune Technologies & Bioressources, Inc. (Nasdaq: NEPT) and based on latest developments regarding Neptune's patents in the U.S. Patent and Trademark Office ("USPTO"), it has decided that it will not continue its efforts to negotiate a final settlement agreement with Neptune.

Commenting on developments, analyst John Baumgartner of Wells Fargo said, "Net, failure to execute a settlement maintains limited visibility into the ultimate outcome of the infringement suit. However, we expect a decision from the International Trade Commission soon, and we maintain that should the ITC rule against Enzymotec, the resulting settlement would likely include royalty payments to Neptune and would not materially impact our positive long-term growth thesis. We continue to view the infant nutrition business as the primary value creator along with continued expansion of Enzymotec's medical foods business. In terms of next potential catalysts, we anticipate an ITC decision, potential Phase III news for Vayarol, and 1Q14 earnings in May."

Wells Fargo has an Outperform rating on Enzymotec.

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

Shares of Enzymotec closed at $21.86 yesterday.


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