In the ongoing patent battle between Exelixis (NASDAQ:EXEL) and MSN Laboratories, a U.S. District Court delivered mixed rulings benefiting both companies. While the Court ruled the 473 patent on Exelixis’ cabozantinib compound to be valid, the 776 patent was ruled to have not been infringed by MSN.
Exelixis’s general counsel was pleased that the Court had found the cabozantinib compound patent to be valid. However, the counsel expressed disappointment at “the court’s decision concerning infringement of the ’776 patent.”
Since July last year, the biopharmaceutical companies have been locked in a lawsuit filed by Exelixis in the Delaware Court. After the ruling by Judge Richard Andrews, Exelixis is planning to request for any potential approval of its rival’s generic product, subject to challenges, to be made on or after August 14, 2026. The date is when the 473 patent expires.
Shares climbed 3.3% in Friday’s pre-market trading session. Truist analyst Asthika Goonewardene said last week that while he expects the litigation to weigh down Exelixis’s near-term performance, he is hopeful that the company will be victorious next year.
Is EXEL a Good Stock to Buy?
Wall Street is bullish on EXEL stock, with a Strong Buy consensus rating based on eight Buys and two Holds. The average price target of $24.80 indicates an upside of 50% over the year ahead.
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