NEW YORK (TheStreet) -- DepoMed (DEPO - Get Report)DEPO was gaining 12.2% to $14.76 Tuesday after the U.S. District Court for the District of New Jersey ruled in favor of the drug manufacturer in is patent lawsuit against Actavis (ACT)ACT.
Judge Pisano ruled that Actavis' Abbreviated New Drug Application for a generic version of DepoMed's postherpetic neuralgia drug Gralise (gabapentin) infringes seven of the company's patents. The latest expiration of the patents involved in the case is February 2024.
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- DEPO's very impressive revenue growth greatly exceeded the industry average of 4.5%. Since the same quarter one year prior, revenues leaped by 126.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- DEPO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, DEPO has a quick ratio of 2.38, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for DEPOMED INC is currently very high, coming in at 93.81%. Regardless of DEPO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DEPO's net profit margin of 18.81% compares favorably to the industry average.
- DEPOMED INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, DEPOMED INC turned its bottom line around by earning $0.74 versus -$0.54 in the prior year. For the next year, the market is expecting a contraction of 37.8% in earnings ($0.46 versus $0.74).
- You can view the full analysis from the report here: DEPO Ratings Report