3M files lawsuit against Kerr Corporation
On December 4, 2017, 3M (MMM) in a press release said that it had filed a lawsuit against Kerr Corporation related to its Protect Dental Restorative Technology. As per the lawsuit, the composite materials of SonicFill 2 and Harmonize violate 3M’s patent rights of nanotechnology used in Filtek dental restoratives. This product has 600 million restorations across the globe.
Eric Wenzel, the global business director for 3M’s Oral Care Solutions Division, said, “As an industry leader, we are committed to protecting our innovative nanotechnology and associated intellectual property.” In 3Q17, 3M’s Health Care segment reported revenue of $1.5 billion and an operating income of $471 million, an increase of 7.7% and 9.3%, respectively, over the previous year. Oral Care is part of 3M’s Health Care segment.
3M stock update
3M stock fell 1.3% and closed at $238.13 for the week ended December 8, 2017. Despite the fall in the stock price, 3M traded 9.7% above the 100-day moving average price of $217.10. On a year-to-date basis, the stock has risen 33.3%, while its other industrial peers like Honeywell International (HON), Deere (DE), and Stanley Black & Decker (SWK) have risen 32.6%, 47.1%, and 46.2%, respectively. MMM is already trading 7.2% above the analyst consensus recommended target price of $220.90. However, MMM’s 14-day relative strength index of 60 indicates that the stock is neither overbought nor oversold.
Investors looking to invest in 3M indirectly can invest in the SPDR Dow Jones Industrial Average ETF (DIA), which invests 6.9% of its portfolio in 3M as of December 8, 2017.