News

AngioDynamics, Inc. ANGO recently announced that it has entered into a settlement agreement with Becton, Dickinson and Company BDX, popularly known as BD, to resolve all outstanding patent litigation with C.R. Bard, Inc., an affiliate of BD.

AngioDynamics is likely to benefit from the settlement of this prolonged legal dispute to a successful resolution as it will lower the company’s ongoing legal expenses and terminate more than 10-year distraction.

For the past six months, ANGO’s shares have lost 23.3% against the industry’s rise of 22.0%. The S&P 500 increased 23.7% in the same time frame.

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Per the settlement agreement, AngioDynamics will receive a license from BD for some of BD's port patents, while BD will receive a license for some of AngioDynamics' catheter patents. A one-time lump-sum payment of $7 million will be made by AngioDynamics to BD, out of which $3 million will be paid within five days, and the remaining amount will be paid in installments over the course of the following 12 months.

In addition, AngioDynamics is likely to make six minimum annual payments to BD of $2.5 million through February 2029. Additional payments are required if 6% of annual net sales of AngioDynamics’ port products exceed the minimum payment.

The case is currently pending before the Federal Circuit. If the Federal Circuit overturns or vacates the District Court's findings of invalidity about the patent claims, which are at issue in the case, AngioDynamics will be required to pay BD $3 million.

Notable Developments

Recently AngioDynamics announced the FDA clearance for the Auryon XL Catheter, a 225-cm radial access catheter, for use with the Auryon Atherectomy System in the treatment of Peripheral Arterial Disease.

With this 225-cm catheter length, access points in Atherectomy procedures can be expanded, which can help reduce access site complications and accelerate patient recovery.

AngioDynamics, Inc. Price

Zacks Rank & Stocks to Consider

ANGO carries a Zacks Rank #3 (Hold) at present.

A couple of better-ranked stocks in the broader medical space are DaVita Inc. DVA and Cardinal Health, Inc. CAH.

DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.

Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.

Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.

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