Neovasc Inc (US) (NASDAQ:NVCN) Explodes As CardiAQ Valve Spat Cools

Neovasc Inc (US) (NASDAQ:NVCN)

Neovasc Inc (US) (NASDAQ:NVCN)

Shares of Neovasc Inc (US) (NASDAQ:NVCN) rallied 44.08% after a United States Appeals Court upheld a lower court decision in a case where the company was accused of stealing trade secrets and breaching non-disclosure agreements. The rally is seen by experts as confirmation that the worst may be behind the biotechnology company as it has previously set aside funds to deal with the majority of the award and is now set to resume operations and collect anticipated revenues.

NVCN Stock Performance

Investors reacted positively to the news, pushing the stock to highs of $1.25 a share before it retreated to the $1.14 a share mark. Even with the impressive rally, the stock continues to trade in a strong downward trend having already dropped below $1 per share.

The stock is currently trading in a $0.72 – $1.32 trading range having come under immense selling pressure for the better part of the year. Neovasc Inc (US) (NASDAQ:NVCN) faces immediate resistance at the $1.18 mark. A close above the resistance level could see the stock surge to highs of $1.50 per share.

Neovasc Inc (US) (NASDAQ:NVCN)
One month stock price chart for NVCN

The specialty medical device company develops, manufactures, and markets products for the cardiovascular market. Neovasc has developed its Tiara technology which is the company’s lead product for the treatment of mitral valve disease.

CardiAQ Valve Spat

Neovasc Inc (US) (NASDAQ:NVCN) is currently considering pursuing appellate review of the new panel’s decision on its long running court battle involving Edwards Life Sciences.

“Regrettably, the jury trial phase of this lawsuit was not resolved to our satisfaction. We will be exploring our options regarding post-trial motions in the trial court and, potentially, the appellate process,” Neovasc Inc (US) (NASDAQ:NVCN) CEO Alexei Marko said in a press release.

The case, first filed in 2014, alleges that the company used trade secrets to develop its Tiara Transcatheter mitral valve replacement. The CardiAQ Valve was acquired by Edward Life Sciences for $400 million. The lawsuit alleged that Neovasc breeched a non-disclosure agreement by using its valve technology to develop the Tiara device and further alleges that Neovasc filed a patent applications for their product.

A jury found Neovasc Inc (US) (NASDAQ:NVCN) guilty of breach of contract and consequently ordered it to pay $112 million to settle the matter in addition to remaining the joint inventor of the ‘964’ patent. The Company already has set aside $70 million into escrow account.

In June, a German court ruled in favor of Edward Life Sciences in a case in which Neovasc Inc (US) (NASDAQ:NVCN) claimed ownership of patents related to its Tiara mitral valve replacement technology. The company has confirmed plans to appeal the German court’s decision even though there are no monetary awards involved.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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