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Boston Scientific and Edward Lifesciences Settle Patent Dispute

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The stock performance of BSX

Today, Boston Scientific (BSX) is trading at $36.76, which is ~4.11% growth from yesterday’s closing price of $35.31. Boston Scientific stock closed at $35.56 for the week ended January 11, 2019, which is ~3% growth from its prior week closing price of $34.21 on January 4, 2019.

Boston Scientific’s price today is ~47% higher than its 52-week low of $25.04 on February 9, 2018. The company hit its 52-week high of $39.44 on October 2, 2018.

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Edward Lifesciences’ stock performance

Today, Edward Lifesciences is trading at a price of $160.16, which is ~7.14% growth from its prior day closing price of $149.49. For the week ended January 11, Edward Lifesciences stock price closed at $152.80, which is ~3% growth from its prior week close of $148.72 on January 4. Today’s price of $160.16 represents 34% growth from its 52-week low of $119.93 on January 18, 2018.

Settlement of patent dispute

Today, Boston Scientific (BSX) and Edward Lifesciences (EW) reached an agreement to settle all outstanding patent disputes between the two companies worldwide. As per the agreement, Edward Lifesciences made a payment of $180.0 million to Boston Scientific. According to the agreement, after this settlement, neither company will be liable to the other for any royalties.

With the agreement in place, all pending cases between the two companies will be dismissed, and neither of the companies will litigate patent disputes associated with current portfolios.

Analyst recommendations

Of the 24 analysts tracking Boston Scientific (BSX) in January 2019, 15 of them recommended a “strong buy,” while seven analysts recommended a “buy,” and two analysts recommended a “hold” rating.

Of 25 analysts tracking Edward Lifesciences (EW) in January 2019, five of them recommended a “strong buy,” nine analysts recommended a “buy,” another nine analysts recommended a “hold,” one analyst recommended a “sell,” and one analyst recommended a “strong sell.”

On January 15, Boston Scientific and Edward Lifesciences had consensus 12-month target prices of $42.22 and $6.92, respectively, which is a ~15.29% and ~6.92% return on investment over the next 12 months.

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