* Kinetic Concepts wins dispute v Smith & Nephew
* Dispute involved two patents
* Kinetic Concepts shares jump as much as 21 pct (Adds analyst comment, share movement)
CHICAGO, March 10 (Reuters) - A federal jury decided in favor of Kinetic Concepts Inc KCI.N in a patent dispute with British orthopedic device maker Smith & Nephew (SN.L) (SNN.N), Kinetic Concepts said.
Shares of Kinetic Concepts were up 14 percent at $49.58 Wednesday afternoon, after shedding some of their gains from a high of $52.50 in the day.
The jury found that Smith & Nephew had infringed two Kinetic Concepts patents. A Kinetic Concepts spokesman said the company would seek an injunction against Smith & Nephew’s use of the patented technology.
“However, the question in the near-term will be whether Kinetic Concepts can secure an injunction to prevent the continued sale of infringing products while the appeal process plays out,” J.P. Morgan analyst Michael Weinstein said.
Michael Matson, an analyst with Wachovia, said in a research note that he believes Kinetic Concepts will still lose market share but that the court win could slow its losses.
Smith & Nephew said it would pursue its invalidity claims in the district court and will also pursue post-trial motions seeking to overturn the infringement verdict and damages award.
The federal court jury in San Antonio, Texas, rendered its decision on Wednesday after almost six weeks of trial. (Reporting by Debra Sherman in Chicago; additional reporting by Ben Hirschler in London and Vidya L Nathan in Bangalore; editing by John Wallace, Jarshad Kakkrakandy)