Gevo Inc. got a 31 percent boost in its share price on Wednesday after successfully staring down a larger competitor in an intellectual property debate. The Englewood, Colo.-based Gevo makes isobutanol at its production plant in Luverne, Minn. On Wednesday a judge ruled Gevo competitor Butamax Advanced Biofuels doesn't hold a valid patent on a yeast used to produce isobutanol and Gevo has not infringed on it.
What analysts are saying: Favorable ruling for Gevo
June 23, 2012 at 8:19PM
Piper Jaffray senior research analyst Michael Ritzenthaler, who has a chemical engineering background, had been optimistic for months that Gevo would prevail. In a note published after the ruling, Ritzenthaler said he expects an appeal but praised the thoroughness of U.S. District Judge Sue L. Robinson's ruling. "This case was meticulously considered and the 27-page ruling is an impressive amalgamation of science and patent language that confirms the outcome we had expected," he wrote.
Ritzenthaler expects Gevo shares to continue moving upward and has set a $17 per share price target and maintained his overweight rating. "The ruling posted ... should alleviate any overhang stemming from the IP litigation," he said.
Gevo's shares closed at $7.78 on Friday.
VASCULAR SOLUTIONS ADDS COMPLEMENTARY PRODUCT
Vascular Solutions' $1.5 million acquisition of a wrist-splint product from Ann Arbor-based Accumed Systems on June 13 will complement Vascular's D-Stat Radial Hemostat Band product line. The splint is used to immobilize the wrist during procedures. Analyst James Terwilliger from the Benchmark Co. wrote: "We believe that there is an excellent cross-selling opportunity between the two devices."
Vascular Solutions, which has annual sales of about $107 million, could add $500,000 in annual sales from the deal.
PATRICK KENNEDY
about the writer
Health care spending rose by 15%, driven by higher prices. Officials say solutions are needed to prevent Minnesotans from being priced out or delaying care they need.
