Innoscience Stock Jumps 5% After US Patent Ruling Win

Innoscience (02577.HK) shares surged more than 5% after the U.S. International Trade Commission issued a final ruling that largely favored the company in a patent dispute with Germany’s Infineon.

"The US International Trade Commission (ITC) issued its final ruling on the patent infringement case filed by Infineon against INNOSCIENCE," CLSA said in a research report, adding the outcome "demonstrates INNOSCIENCE's independent technological innovation capability."

The ITC’s final determination confirmed that four of six patent claims were not infringed by Innoscience. The two claims found to be in violation relate only to legacy products that the company has already discontinued, resulting in no material impact on its current U.S. operations. Brokerage CLSA maintained its Outperform rating on Innoscience and held its price target at HKD113.6.

The ruling allows Innoscience to continue importing and selling its current gallium nitride (GaN) power devices in the United States without restriction, removing a significant legal overhang for the chipmaker. The company's stock price closed 5.5% higher at HKD69.1 in Hong Kong, with trading volume swelling to 4.54 million shares worth HKD311 million.

In a press release, Innoscience stated the commission affirmed that its redesigned products, which are embodied in its current commercial offerings, fall outside the scope of the disputed patents. The company also noted it has successfully petitioned the U.S. Patent and Trademark Office to review the remaining two claims and is confident they will be invalidated.

The favorable legal outcome solidifies Innoscience’s position in the crucial U.S. market and supports its growth trajectory in the GaN power semiconductor space. Investors will now watch to see how the unimpeded access to the U.S. market translates into sales growth in the upcoming quarters.

This article is for informational purposes only and does not constitute investment advice.