Glaukos Patent Dispute Is A Non-Event, So 'Stop Worrying' Says Analyst

• Glaukos Corp. (NYSE: GKOS) has seen a 12.62 percent decline in its share price over the past three months.
• Caroline Corner of Cantor Fitzgerald has maintained a Buy rating and price target of $37 on the company.
• Corner believes that despite the patent rulings not being in favor of Glaukos, they are only likely to have a “minimal potential effect” on the company.

The management has issued a press release that details the rulings from the United States District Court of the State of Delaware, given on Friday, regarding the three patent lawsuits that Glaukos had filed against its competitor, Transcend.

The District Court ruled that Glaukos’ three patents, associated with its iStent Supra product, were not infringed upon by Transcends CyPass stent. The iStent Supra is expected to receive approval during 2015-2020.

The District Court also denied the company’s motion “for summary judgment of no inequitable conduct with respect to patents,” the Cantor Fitzgerald report said. This implies that the two companies would need to go to trial, the date for which is set at November 2.

The rulings mean than if both Supra and Cypass are approved, they will both enter the market and compete against each other. Given that such competition was already expected, Corner does not view this as bad news. The November trial had also been expected.

“We think the patent dispute will have little, if any effect on future potential Supra sales since we had always expected Transcend as competition,” Corner stated, while adding that even if Gaukos is found to have exhibited “unequitable conduct” during the November trial, it would not have any immediate impact of the company or its sales.

Corner also believes that the recent pullback in the stock was overdone.