Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotechnology company Cadence Pharmaceuticals, soared a whopping 40% today after receiving a favorable ruling from the U.S. District Court for the District of Delaware in its patent suit against Exela Pharma Sciences.
So what: The stock has slumped since July on concerns that Cadence's Ofirmev might face generic competition much sooner than expected due to invalid patents; but today's ruling is quickly easing those worries. Specifically, the court found that Exela's ANDA infringes on both of Cadence's patents on Ofirmev, which is likely to give Ofirmev patent exclusivity through 2021.
Now what: Cadence management remains focused on continuing to drive Ofirmev's already wildly successful launch.
"We continue to gain market share and posted year-over-year sales growth of more than 100% in each quarter of 2013," said CEO Ted Schroeder. "We remain confident in our franchise, and look forward to updating investors further on our progress."
Of course, with the stock now up more than 200% from its 52-week lows, Fools will need plenty of biotech savvy to figure out how much of that growth is already baked into the price.
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The article Why Cadence Pharmaceuticals Inc. Skyrocketed originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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