Tuesday turned out to be a nightmare for Neovasc Inc (US) (NASDAQ:NVCN) investors after the medical device maker reported that Federal District Court Judge Allison D. Burroughs ruled in favor of CardiAQ on the issue of inventorship of Neovasc’s ‘964 Patent. Judge Burroughs upheld the jury’s verdict and $70 million award against Neovasc, and awarded US$21 million in enhanced damages to that award.
Neovasc shares reacted to the news, crashing nearly 41% to $0.60 in early trading Tuesday.
“While we are disappointed with this outcome, we believe this decision affirms Neovasc’s rights to advance the Tiara program and treat patients with this innovative technology and look forward to doing so,” said Alexei Marko, CEO of Neovasc. “We are very pleased with the clinical results to date and will continue to work with selected centers to implant Tiara in suitable patients in our TIARA-I Early Feasibility Trial and compassionate use programs.”
Upon entry of a judgment by the trial court, Neovasc will immediately seek to stay the payment of the US$70 million damages award, and the enhancement to that award, until after an appeal of the basis for that award and enhancement is complete. The Company will appeal the validity of the award, as well as the ruling on inventorship. The appellate process may take up to a year to complete. (Original Source)
On the ratings front, Neovasc has been the subject of a number of recent research reports. In a report issued on August 10, Canaccord analyst Jason Mills reiterated a Buy rating on NVCN. Separately, on August 9, Leerink Swann’s Danielle Antalffy reiterated a Buy rating on the stock and has a price target of $10.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Mills and Danielle Antalffy have a yearly average return of 0.9% and 8.9% respectively. Mills has a success rate of 52% and is ranked #1384 out of 4178 analysts, while Antalffy has a success rate of 58% and is ranked #330.
Neovasc, Inc. operates as a specialty medical device company that develops and manufactures products for the rapidly growing cardiovascular device marketplace. Its products include the Neovasc Reducer for the treatment of refractory angina, the Tiara technology in development for the transcatheter treatment of mitral valve disease and a line of advanced biological tissue products that are used as key components in a variety of third-party medical products, such as vascular surgical patches and transcatheter heart valves. The company also offers pericardial tissue processing, vascular product development, design and manufacturing solutions to industry partners.