Credit Suisse Raises Price Target for Edwards Lifesciences (EW)

In a research report released 4/5/2010, Credit Suisse is raising their target price to $112 from $105, in Edwards Lifesciences Corp. (NYSE: EW), and maintaining their Outperform rating, to reflect a favorable jury verdict regarding EW's transcatheter valve patent.

The Jury found that Medtronic CoreValve (NYSE: MDT) willfully infringed EW's patent. On Thursday, a jury found that EW's patent was valid and the MDT willfully infringed. The jury awarded EW $73.5 million in damages.

EW will now move to enforce the verdict and seek a permanent injunction against the US manufacturing of Medtronic's - MCV's ReValving system. EW can also seek increased damages up to three times the awarded amount because of the willful infringement. MDT said it will appeal the verdict and oppose an injunction.

Commenting on the outlook Credit Suisse said:

“Patent litigation cases often drag on for several years in the courts. The jury decision in the US case is a positive that in our view increases the value of EW's patent portfolio and EW as an acquisition candidate. If an injunction is granted, we would consider it additional upside. : Our EW target price of $112 is 26.5x our 2011 EPS estimate of $4.23. We maintain our $56 target price on MDT.”