Post from yahoo about lawsuit
Re: eagleeye/rstor
by: eagleeyeinvestor 04/09/06 04:57 pm
Msg: 85113 of 85114
Thanks.
I am still looking into this suit. I noticed one poster said the suit was filed in the 9th circuit. IMO, that means INSM has an even higher probability of winning. They do not favor corporate interests. The one thing about the 9th circuit is that probably half of their decisions are overturned. I think the law is strongly on INSM's side, but if the 9th should happen to rule against them, I should buy on that alone because the 9th has a long history of getting overturned. In the case INSM wins, I would think that is one of the 50% of 9th circuit cases that will stand because of the time/length of any potential patent violation.
The poster who holds that an FDA decision is different than a legal one is right. But he more than likely either has an agenda or does not understand patent law and law in general. And I have seen these tautologies before on other mbs; it kind of makes me think the hedgies might be playing this. They put forth absolutely true statements and then draw an erroneous conclusion to try to lead people down the wrong path.
When a party allows their patent to be violated for a considerable period of time, the court will probably not penalize the violator AT ALL. This is true in patent law and almost all law (i.e. squatter's rights, adverse possession, etc.). The question is how long did INSM violate the patent? This is really - How long did it take INSM to get its drug approved, from preclinical work all the way to FDA decision day? This has to be more than 7-8 years. I think that is all it will take for INSM to win on summary judgment, because you can bet TRCA knew what INSM was doing for at least 3 or 4 years before they filed a suit.
Remember the 9th has a way of constructing things against rights holders. This bodes well for INSM in the immediate future. And regardless of the 9th, INSM should prevail. Any judge worth his salt will look at the TRCA suit and throw it out just by asking "Why did you wait so long, literally until the day of FDA approval?" Think of the harm to ISM that TRCA caused by allowing INSM to get even through Phase 2 trials. INSM has expended considerable time and money on its drug. IMO, this is the reasoning that any sensible court will apply to throw TRCA/DNA right out of the courtroom.
I may be buying this week just because of the disparity in what the market thinks and what I think to be a value regardless of INSM's long-term viability. The one negative is that the market just does not seem to value these niche biotechs. In any case, it should be an easy double from here on the court case alone - even if I have to wait 6 months.
All IMHO and thanks for your comments.
PS_ I haven't been interested in INSM at all, but the drop after approval started to make me think about buying. It just doesn't make sense that this is under $2 when TRCA was in the low teens I think with a similar drug.
Posted as a reply to: Msg 85092 by rstor1
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