Depomed Inc (NASDAQ:DEPO) announced that Judge Claire C. Cecchi of the United States District Court for the District of New Jersey has ruled in favor of Depomed in the company’s patent litigation against all three filers of Abbreviated New Drug Applications (ANDAs) for Depomed’s NUCYNTA franchise. With the court’s ruling, Depomed expects market exclusivity until December 2025 for NUCYNTA® ER, NUCYNTA® and NUCYNTA® oral solution (an unmarketed form of NUCYNTA). 1
“We are pleased with the Court’s decision as it confirms the validity and strength of the NUCYNTA patents,” said Jim Schoeneck, President and CEO of Depomed. “We look forward to growing the NUCYNTA franchise, comprised of two important and highly-differentiated medicines, for at least the next 9 years.”
The court found U.S. patent Nos. 7,994,364 and RE39,593 to be valid and infringed by the defendants. The patents cover the entire NUCYNTA franchise and will expire on December 27, 2025 and February 5, 2023, respectively.1 Judge Cecchi upheld the validity of U.S. Patent No. 8,536,130 (the “130 Patent”), but found that two of the three filers do not infringe the patent. The ‘130 Patent covers NUCYNTA ER until March 2029. 1 The company intends to appeal the court’s finding as it relates to infringement of the ‘130 Patent.
The defendants in the litigation included Actavis Inc., Alkem Laboratories Limited and Roxane Laboratories, Inc., along with certain of their affiliated companies. All three defendants filed ANDAs for NUCYNTA ER and NUCYNTA. An affiliate of Actavis filed an ANDA for NUCYNTA oral solution. (Original Source)
Shares of Depomed closed today at $24.97, up $1.08 or 4.52%. DEPO has a 1-year high of $27.02 and a 1-year low of $12.25. The stock’s 50-day moving average is $21.89 and its 200-day moving average is $18.96.
On the ratings front, Depomed has been the subject of a number of recent research reports. In a report issued on September 21, RBC analyst Randall Stanicky reiterated a Hold rating on DEPO, with a price target of $22, which reflects a potential downside of 8% from last closing price. Separately, on September 19, Cantor’s Chiara Russo reiterated a Buy rating on the stock and has a price target of $25.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Randall Stanicky and Chiara Russo have a total average return of 3.5% and 6.3% respectively. Stanicky has a success rate of 44% and is ranked #1104 out of 4200 analysts, while Russo has a success rate of 58% and is ranked #611.
Overall, 4 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $24.67 which is 3% above where the stock opened today.
Depomed, Inc. is a pharmaceutical company, which manufactures and distributes pharmaceutical products to treat pain and other central nervous system conditions. Its brands include Gralise, Zipsor, Lazanda, Cambia, NUCYNTA ER and NUCYNTA.