BioDelivery Dips on Lawsuit News Print E-mail
By Vinny Cassano   
Wednesday, 19 January 2011 12:59

Shares of BioDelivery Sciences (NASDAQ:BDSI) took a 10% haircut on Tuesday and suffered another 8% drop today, after the company announced that a patent infringement filed by MonoSol Rx, LLC against BioDelivery, ONSOLIS partner MEDA and Aveva Drug Delivery Systems, Inc this past November has been amended to include a 'false marketing' charge.

It's arguable whether or not the drop in the BDSI stock was justified on this news, but considering where shares were trading just a short time ago - just over $2 - the dip may not be considered significant. A 20% move to the downside in the biotech sector is barely a blip on the radar these days, but investors will keep an eye on the stock the next few days.

The potential of BioDelivery lies in the future of ONSOLIS sales both in the US and abroad, and even moreso in the pipeline products that are being developed using the BEMA drug delivery technology. 

The lawsuit is a factor to take into consideration, most certainly, but it's not likely, in my opinion, that the suit will amount to much other than a slap on the wrist, with a modest settlement sum or royalty rate being awarded to MonoSol as an outcome.

I'm more interested in the development of BioDelivery's pipeline than this lawsuit, at least for the time being, but I'm always a fan of selling some trading shares into any significant spikes just to cover all bases. 

BDSI is no different. Worth watching.

Vinny also authors the popular stock investing blog VFC's Stock House.

Disclosure:  Long

"Featured Content" profiles are meant to provide awareness of these companies to investors in the small-cap and growth equity community and should not in any way come across as a recommendation to buy, sell or hold these securities. BiomedReports is not paid or compensated by newswires to disseminate or report news and developments about publicly traded companies, but may from time to time receive compensation for advertising, data, analytics and investor relation services from various entities and firms. Full disclosures should be read in the 'About Us Section'.

Add this page to your favorite Social Bookmarking websites
Digg! Reddit!! Mixx! Google! Live! Facebook! Technorati! StumbleUpon! MySpace! Yahoo!

blog comments powered by Disqus