Mizuho Sees Relief For This Small-Cap Stock After Patent Legal Overhang Lifted

The US Patent Trial and Appeal Board (PTAB) issued a final written decision in favor of Concert Pharmaceuticals Inc CNCE regarding the post-grant review (PGR) for the '659 method-of-use patent.
The '659 patent claims methods of treating hair loss, including alopecia areata with certain doses of CTP-543, a deuterated form of ruxolitinib, JAK 1/2 inhibitor, being marketed by Incyte Corporation INCY.
The patent expires in 2037.
PTAB upholds all of the challenged claims of the '659 patent, concluding that Incyte failed to demonstrate by a preponderance of the evidence that the challenged claims of the '659 patent were not patentable.
Mizuho says the favorable ruling should provide relief for investors and some support behind CNCE shares.
The analysts reiterated the price target to $9 with a Buy rating.
Separate from the PGR relating to the '659 patent, the interference proceedings regarding the '149 patent are continuing.
The analysts continue to assume a settlement can be reached between Concert and Incyte, especially given that Concert secured a favorable ruling on the '659 patent.
They believe Concert could pay Incyte a reasonable royalty (currently model ~10% of net sales) to launch and commercialize CTP-543.
Price Action: CNCE shares are up 10.7% at $3.82 during the market session on the last check Friday.