Catalyst Alert: Amgen/Regeneron Patent Case Appeal Could Be Decided By April

After the close on Monday, Amgen, Inc. AMGN announced that the U.S. District Court of Delaware had denied the motion by Sanofi SA (ADR) SNY and Regeneron Pharmaceuticals Inc REGN to stay the injunction pending the appeal of the ongoing PCSK9 litigation in the Court of Appeals for the Federal Circuit.

Chardan Capital’s Gbola Amusa maintains a Neutral rating on the company, with a price target of $345.

District Court Ruling

In its ruling, the District Court extended the timing of the injunction from 30 days to 45 days, “allowing Sanofi and Regeneron to seek review of the Court's injunction and stay denial at the CAFC,” the analyst mentioned.

Amusa believes that denying the stay could lead to the appeal process being accelerated, as well as the earlier-than-expected potential removal of Regeneron’s Praluent from the U.S. market.

Final Decision in April

“In light of yesterday's block of the injunction stay and after our further consultation with expert legal counsel, we now believe that the appeals process is likely to be substantially accelerated, with a potential final decision from the CAFC as early as April 2017,” the analyst explained.

Given expectation of the potential loss of Praluent from the U.S. market in the near future, as well as the cardiovascular outcomes data for Repatha, to be announced at the American College of Cardiology Conference on March 17–19, potentially de-risking the PCSK9 inhibitor class, Amusa recommends Amgen over Regeneron Pharma for those wanting to invest in the PCSK9 inhibitor space.