The Globe and Mail

Look for QLT Inc. to have a shaky opening on Wednesday after a Massachusetts court slapped the drug developer with patent infringement damages on its flagship Visudyne blindness drug exceeding what some analysts had expected.
“Worse than we thought,” writes Westwind Partners analyst Aaron Bennett. Adds Cormack Securities’ David Dean: “The worst case scenario has been confirmed by the court.”
Essentially, the Massachusetts Eye and Ear Infirmary wins 3 per cent of “past and future” Visudyne sales, plus interest and legal fees, which could tally $115-million (U.S.). Many QLT watchers had figured the royalty would be held to future sales only. And as a result, the Massachusetts General Hospital may go after QLT to improve its skimpy royalty pay packet from the drug.
“We believe the stock’s valuation continues to run above its fundamental value, particularly given the litigation risks that continue,” writes National Bank Financial analyst Prakash Gowd.
His $5.60 price target excludes the impact of the MEEI decision, which will be appealed, and the potential MGH risk.