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Piper Sandler maintains Neutral rating on Axonics shares target post patent ruling

EditorTanya Mishra
Published 09/19/2024, 08:24 AM
AXNX
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Axonics Modulation Technologies Inc. (NASDAQ: NASDAQ:AXNX) has maintained its Neutral rating and a price target of $71.00 following a legal victory.

The company was involved in a patent infringement lawsuit filed by a competitor in the U.S. District Court for the Central District of California.

The jury's decision was in favor of Axonics, finding that the company did not infringe on any of the three patents in question.

The lawsuit, initiated in late 2019, came after Axonics launched its rechargeable sacral neuromodulation (SNM) device in the U.S. market.

The patents involved were related to the company's tined leads and temperature sensor technology. The positive outcome of the lawsuit is seen as a significant win for Axonics, potentially clearing the way for its continued operation without the threat of infringement claims.

Further to the patent case, the analyst mentioned the anticipated acquisition of Axonics by Boston Scientific Corporation (NYSE:BSX), which is expected to be completed in the second half of 2024.

It follows the completion of a second request from the Federal Trade Commission (FTC). The acquisition is being closely watched by industry observers and could have significant implications for Axonics' future.


InvestingPro Insights


In light of the recent legal victory for Axonics Modulation Technologies Inc. (NASDAQ:AXNX), and with the potential acquisition by Boston Scientific Corporation on the horizon, it's worth examining some key financial metrics and analyst insights provided by InvestingPro. The company's market capitalization stands at $3.51 billion, reflecting a substantial presence in its sector. Moreover, Axonics holds a Price / Book ratio of 5.46 as of the last twelve months leading up to Q2 2024, which may indicate a premium valuation compared to its book value.

InvestingPro Tips highlight that Axonics is expected to see net income growth this year, which could be a positive signal for investors looking for potential profitability. Additionally, the company has more cash than debt on its balance sheet, suggesting a solid financial position to support its operations and growth strategies. These insights are particularly relevant given the company's recent legal success and the anticipated acquisition, which could further influence its financial trajectory.

For readers interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further context on Axonics' performance and outlook. As the company navigates through these significant events, staying informed with comprehensive financial data and expert analysis could be invaluable for stakeholders and potential investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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