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Update 20:15: Add Exelixis’s comment.
exélixis (NASDAQ:EXEL) had a mixed ruling in its Cabometyx vs. MSN Laboratories patent lawsuit. exelixis increased 2.8% in the trade after hours.
The judge in the patent case ruled that patent 776, which goes as of October 2030, it was not breached, a loss for Exelixis. On the 473 patent, the judge ruled that the patent was valid, according to the judicial opinion of Judge Richard Andrews. The 473 patent is valid until August 2026.
“We are pleased that the court has affirmed the validity of Exelixis’ cabozantinib compound patent,” Jeffrey Hessekiel, Exelixis’s legal counsel, said in a statement. “While we are disappointed with the court’s decision on infringement of the ‘776 patent, we remain confident in the strength of the cabozantinib patent estate.”
The judge’s opinion seems to be expected mainly after the trial was held in May. The judge at the time appeared to telegraph the ruling he would make, the merchants said at the time, citing comments at the court hearing. Shares of Exelixis (EXEL) fell 11% on May 19 on the last day of the trial.
As a result of the ruling, Exelixis intends to request that the District Court order that the effective date of any potential US regulatory approval of the MSN generic product, subject to appeal or challenge, be no earlier than December 14. August 2026, which is the expiration date of Exelixis’ ‘473 patent.
“While we caution that patent litigation for Cabometyx may be an issue in the near term (1Q23), we are optimistic of an eventual victory in 2024,” Truist analyst Asthika Goonewardene, who is rated a buy and rated Buy, wrote in a note. a $32 price target. Friday.
JMP Securities analyst Silvan Tuerkcan also weighed in on EXEL’s patent case in a note Thursday before the judge’s decision was released. Tuerkcan has an outperform and a $24 price target on EXEL.
“Our base case assumption is that litigation will hinge on the newest trial scheduled for 2023 with a verdict in 2024,” Tuerkcan wrote. “However, the reduction in uncertainty with the first decision should help stocks, in our view.”
The trial in MSN II is scheduled to begin in October 2023 in the US District Court for the District of Delaware.
Last Monday, Exelixis (EXEL) reported that it sees Q4 revenue revenue of $415 million and issues guidance for FY23.
