Analysts mixed on impact of Vnus patent victory; Piper Jaffray downgrades to "Neutral"
NEW YORK (AP) -- While medical device maker Vnus Medical Technologies Inc. claimed a major patent litigation victory Tuesday against two rivals, analysts are mixed over the victory's effect on the company's future performance.
Under a settlement announced Tuesday with AngioDynamics Inc. and Vascular Solutions Inc, the two companies will pay Vnus a total of $9.9 million in back royalties. The two companies were also granted a license to use Vnus products in the treatment of varicose veins.
While boosting his price target $1 to $21, Piper Jaffray analyst Thomas J. Gunderson Sr. cut his rating on Vnus shares to "Neutral" from "Buy," noting the stock has had a 46 percent run-up year-to date. He also expects revenue growth to slow.
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