Medical devices firm Globus Medical, Inc. (GMED) has filed a patent infringement lawsuit against Illinois-based medical technology company Life Spine, Inc. In the lawsuit, Globus alleged that Life Spine has infringed on seven patents related to its expandable interbody spacer technology.
Globus filed the lawsuit in the U.S. District Court for the District of Delaware and is seeking injunctive relief and damages from Life Spine. The lawsuit includes several products that Life Spine manufactures and sells.
Headquartered in Pennsylvania, the company designs, develops and sells products to treat patients suffering from musculoskeletal disorders. Shares of Globus closed nearly 1.1% down on Wednesday at $75.50. (See Insiders’ Hot Stocks on TipRanks)
President and CEO of Globus, Dave Demski, said, “We’ve invested tremendous effort and millions of dollars in research and development to create innovative technology to improve the lives of patients, generating over 256 patents related to expandable interbody implants alone.”
“Our intellectual property is a critical component in making such advancements possible, and we are committed to protecting our proprietary technology against companies that benefit from making and distributing infringing devices,” Demski added.
Two months ago, Needham analyst David Saxon reiterated a Buy rating on the stock with a price target of $92 (21.9% upside potential). The analyst expects the company to report earnings per share (EPS) of $0.45 in the third quarter.
Overall, the stock has a Moderate Buy consensus rating based on 9 Buys and 4 Holds. The average Globus Medical price target of $89.42 implies an 18.4% upside potential. Shares have gained 37.8% over the past year.
According to TipRanks’ Smart Score rating system, Globus scores an 8 out of 10, suggesting that the stock is likely to outperform market averages.
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