Edwards Lifesciences Corp EW and Abbott Laboratories ABTannounced an agreement this week to settle their patent dispute. Notably, Edwards will pay Abbott $100 million in royalty expenses through 2024, according to Morgan Stanley.
The Edwards Lifesciences Analyst: David Lewis reiterated an Overweight rating on Edwards Lifesciences with an $83 price target
The Edwards Lifesciences Thesis: The settlement removes a “key overhang” for Edwards and is an "expensive positive" for the company, Lewis said in a Monday note.
This represents an elimination of a risk to the downside that the analyst quantified as between $20 to 30 million.
Edwards is set to release its second-quarter report July 23.
EW Price Action: Edwards Lifesciences shares were up 1.15% at $72.04 at the time of publication Wednesday.
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