HemCon Medical Technologies said it’s filing for Chapter 11 bankruptcy protection for its U.S. operation after losing a $34.2 million court decision last month, saying it plans to appeal the ruling.
In March a sharply split U.S. Court of Appeals for the Federal Circuit reversed course and reinstated a win for Marine Polymer Technologies in its wound dressing patent spat with HemCon.
That decision awarded the $34.2 million in damages to Marine Polymer, a tab HemCon is evidently unable to pay.
"Chapter 11 gives us the best opportunities to maximize the value of HemCon and to continue to conduct business operations while we restructure debt, costs and other obligations," president & CFO Nick Hart said in prepared remarks. "In addition, HemCon is planning on filing a petition to request that the [Federal Circuit] rehear its 5-5 decision on claim construction, in the patent infringement case."
HemCon said its European subsidiary is not subject to the Chapter 11 proceedings.
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- H.I.G. Bioventures drums up $268M life sciences fund
- Pyng Medical announces $500k private placement
- Seventh Sense raises $750k
- Aleva Neurotherapeutics reels in $4.4M Series B
Analysts’ ups and downs
- Becton Dickinson & Co. (NYSE:BDX): JP Morgan maintains "neutral" rating; Deutsche Bank maintains "hold" rating, $82 price target.
- Danaher (NYSE:DHR): Morgan Stanley maintains "overweight" rating.
- Corning Inc. (NYSE:GLW): Sterne Agee reiterates "buy" rating, $16 price target; JP Morgan maintains "underweight" rating.
- Intuitive Surgical (NSDQ:ISRG): Dougherty & Co. initiates coverage at "buy," $650 price target; Zacks Equity Research rates as "#1 Rank (Strong Buy)."
