The judge found that Jeuveau, produced by Newport Beach, Calif., medical-beauty company Evolus and South Korean health-care group Daewoong, is made with trade secrets stolen from Allergan and Medytox.
Mizuho analyst Vamil Divan lowered his rating on Evolus to neutral from buy and slashed his share-price target to $3 from $8.
Evolus and Daewoong have asked the full U.S. International Trade Commission to review the judge’s decision. But Divan wrote in a report cited by Bloomberg that he doesn’t “have enough visibility or comfort into the ultimate outcome here to continue” recommending Evolus stock.
He had expected Evolus to come out on top in the judgment or at worst agree to a settlement in which it would pay Medytox more royalties on Jeuveau sales in the U.S.
The ITC is scheduled to complete its investigation in November.
Meanwhile, SunTrust Robinson Humphrey halved its share-price target to $6 for Evolus, though it affirmed its buy rating on the stock.
According to Bloomberg’s tally of analysts, six have buy ratings on Evolus, two have holds and two have sells. Their average price target is $11.
Evolus shares at last check were trading at $3.20, down 40%. The stock had risen 37% in the three months through Monday.
AbbVie shares eased to $98.70, down 0.3%. The stock has risen 31% in the past three months.