“We maintain our Overweight rating and $9 price target on shares of GEVO following two very favorable orders from the Delaware District Court yesterday.
“District court orders yesterday are a significant step forward for Gevo. Yesterday afternoon, the District Court issued a series of orders ahead of the pre-trial conference today. The court agreed with Gevo on their proposed claim construction, which now reads ‘an enzyme … [that] is NADPH-dependent.’ Gevo’s pathway uses NADH and Butamax’s uses NADPH.
“Therefore, the case comes down to almost a semantic argument of whether a microbiologist (someone skilled in the art) would know the difference between enzymes that are dependent on different cofactors. Academic and trade literature, as well as subject experts, support Gevo’s position.
“The summary judgments also fall Gevo’s way. In addition to the claim construction, Judge Robinson also issued her rulings on the summary judgment motions. While all of Butamax’s summary judgment motions were denied, Gevo’s were both partially granted.
“Of particular interest are claims 12 and 13 in Butamax’s ‘889 patent, which have been ruled to be invalid. These claims pertain to genes that are deactivated to improve flow of carbon through the metabolic pathway, enabling isobutanol production at ‘commercial’ yields.
“Without these two claims, Butamax will not be able to use this technology to produce isobutanol with any meaningful efficiency. What is notable, however, is that Gevo has these claims in their biocatalyst patents.”
Nice ... we should see a nice run-up into the close .... all gaps on the way back up have been closed - just a few weeks a go GEVO hit $2.70/share before any conclusive news came out ... they MMs dropped her all the way down to 1.88 just for kicks ... this is why GEVO sports a 4 plus BETA ... it's all about riding the VOL Baby.