- The US Patent Trial and Appeal Board (PTAB) issued a final written decision in favor of Concert Pharmaceuticals Inc (NASDAQ:CNCE) regarding the post-grant review (PGR) for the '659 method-of-use patent.
- The '659 patent claims methods of treating hair loss, including alopecia areata with certain doses of CTP-543, a deuterated form of ruxolitinib, JAK 1/2 inhibitor, being marketed by Incyte Corporation (NASDAQ: INCY).
- The patent expires in 2037.
- PTAB upholds all of the challenged claims of the '659 patent, concluding that Incyte failed to demonstrate by a preponderance of the evidence that the challenged claims of the '659 patent were not patentable.
- Mizuho says the favorable ruling should provide relief for investors and some support behind CNCE shares.
- The analysts reiterated the price target to $9 with a Buy rating.
- Separate from the PGR relating to the '659 patent, the interference proceedings regarding the '149 patent are continuing.
- The analysts continue to assume a settlement can be reached between Concert and Incyte, especially given that Concert secured a favorable ruling on the '659 patent.
- They believe Concert could pay Incyte a reasonable royalty (currently model ~10% of net sales) to launch and commercialize CTP-543.
- Price Action: CNCE shares are up 10.7% at $3.82 during the market session on the last check Friday.
