Jefferies says Galafold summary judgment as expected, may facilitate settlement

Jefferies analyst Dennis Ding notes that a judge has denied Aurobindo’s motion for summary judgment to invalidate Amicus (FOLD) Therapeutics’ 4 patents on the basis of obviousness and unpatentable subject matter. The judge in the Galafold IP case ruled that the case will move ahead to trial on September 29, which is in line with the firm’s expectations as it viewed Aurobindo’s invalidity arguments as a “Hail Mary” attempt to win the case without going to trial, Jefferies adds. But most importantly, this may facilitate a settlement before the trial, the firm argues. The firm’s DCF implies Galafold is worth $10-$12/share if U.S. generics launch in 2037 vs. the stock is trading at a major discount to fundamentals. Jefferies has a Buy rating on Amicus with a price target of $16.