Gevo's shares rise after court ruling
Biofuel company Gevo wins court ruling in patent case brought by Butamax, shares soar
ENGLEWOOD, Colo. (AP) -- Gevo Inc.'s shares soared Wednesday after the biofuel products maker received a favorable ruling in a patent case filed by a competitor.
A U.S. District Court judge rejected Butamax Advanced Biofuels LLC's request that the court stop Gevo from selling some of its products. That means Gevo can now resume sales to customers in any market or region, Gevo said Wednesday.
Gevo makes isobutanol, an alternative to ethanol that is blended into fuel. Butamax makes biobutanol, which is another butanol product used in producing biofuel.
Butamax requested a preliminary injunction against Gevo in September, claiming that one of Gevo's products used for blending in fuel infringed on Butamax's patents. Butamax was formed in 2009 as a joint venture between BP and DuPont to create a premium biofuel molecule.
Brett Lund, executive vice president and general counsel for Gevo, said Butamax's claims lack merit and are attempts to derail Gevo's progress.
Citi analyst Timothy Arcuri said that the decision is a positive for Gevo, which is his top pick in the industry.
"While there are still risks to commercialization, the degree to which a company with the financial resources of Butamax has fought to keep Gevo from the market means a very plausible outcome is that Butamax soon shifts course and may ultimately try to acquire Gevo," he said in a research note Wednesday.
Shares of Gevo, based in Englewood, Colo., rose $1.91, 32.2 percent, to $7.83 by late afternoon. They've traded between $4.84 and $18.75 over the past 52 weeks.
