Morgan Stanley Says Edwards Lifesciences Settlement With Abbott An 'Expensive Positive'

Edwards Lifesciences Corp (NYSE: EW) and Abbott Laboratories (NYSE: ABT)announced an agreement this week to settle their patent dispute. Notably, Edwards will pay Abbott $100 million in royalty expenses through 2024, according to Morgan Stanley. 

The Edwards Lifesciences Analyst: David Lewis reiterated an Overweight rating on Edwards Lifesciences with an $83 price target 

The Edwards Lifesciences Thesis: The settlement removes a “key overhang” for Edwards and is an "expensive positive" for the company, Lewis said in a Monday note. 

This represents an elimination of a risk to the downside that the analyst quantified as between $20 to 30 million.
Edwards is set to release its second-quarter report July 23. 

EW Price Action: Edwards Lifesciences shares were up 1.15% at $72.04 at the time of publication Wednesday.