NEW YORK (AP) -- Shares of CryoLife Inc. traded higher Friday, a day after the company said it is settling two lawsuits.
THE SPARK: The company said Thursday that it will pay CardioFocus $4.5 million to settle a patent lawsuit, and will get $3.5 million from Medafor Inc. to resolve a payment dispute.
It will make the payment to CardioFocus within 30 days and receive the payment from Medafor in two parts, with the first coming by early July and the second by early September.
THE BIG PICTURE: The Kennesaw, Ga., medical device maker said it will update its financial guidance in late July to reflect the settlements and its recent acquisition of Hemosphere Inc.
THE ANALYSIS: Benchmark Capital analyst Raymond Myers said resolving the two major lawsuits eliminates about $1 million in expected legal spending in the second half of 2012. He said the company is now free to focus on selling its cardiac and vascular surgery products.
"CryoLife is now free of its multi-year entanglement with Medafor and we are aware of no other significant legal issues to distract management from executing its growth plan," he wrote.
Myers maintained a "buy" rating and price target of $7.50 on the stock.
SHARE ACTION: CryoLife shares rose 18 cents, or 3.8 percent, to $4.96 in afternoon trading. They are down 20 percent from their closing price on Feb. 16. CryoLife reported its fourth-quarter and 2011 results before the market opened that day.
