NanoString Technologies Inc, a once-prominent player in the biotechnology sector, finds itself navigating treacherous waters as it voluntarily plunges into a Chapter 11 restructuring proceeding. The decision, revealed on Monday, has sent shockwaves through the market, causing NanoString’s stock to plummet to a mere $0.18 at the opening bell, a stark contrast to the $0.46 closing price on the preceding Friday.
At the time of this publication, NanoString Technologies Inc stock (NSTG) has witnessed a decline.
NanoString Technologies Inc
Current Price: $0.14
Change : -0.33
Change (%): (-70.22%)
Volume: 15.5M
Source: Tomorrow Events Market Data
This drastic measure comes in response to the unexpected outcome of the November GeoMx patent litigation trial in Delaware, where NanoString faced off against 10x Genomics Inc. The jury’s decision in favor of 10x Genomics and the subsequent astronomical damages awarded have forced NanoString into protective mode. Brad Gray, the President and CEO of NanoString, expressed the necessity of these actions to safeguard the interests of stakeholders, customers, and employees.
The financial blow dealt by the jury’s decision, awarding over $31 million in damages, stems from the finding that NanoString’s GeoMx Digital Spatial Profiler willfully infringed upon all seven asserted patents owned by Prognosys, exclusively licensed to 10x Genomics. The ramifications of this legal defeat have been further exacerbated by NanoString’s unfavorable initial rulings in multiple infringement lawsuits brought forth by 10x Genomics in both the U.S. and the European Union, targeting NanoString’s GeoMx DSP and CosMx SMI product lines.
In response to the dire situation, NanoString is actively exploring strategic alternatives, with the potential sale of the company or specific product lines on the table. The company is not merely succumbing to the legal onslaught; it is fighting back by entering into an agreement in principle with certain incumbent lenders. This agreement would infuse NanoString with a much-needed lifeline of at least $40 million in new capital in the form of debtor-in-possession financing, subject to approval by the Bankruptcy Court.
Despite the tumultuous times, NanoString aims to maintain its commitment to its extensive base of over 1,500 nCounter, GeoMx DSP, and CosMx SMI platforms. The pledged debtor-in-possession financing is anticipated to provide the liquidity necessary to sustain the company’s operations during the turbulent legal battles ahead.
As NanoString Technologies plunges into Chapter 11, the once-promising biotech firm grapples with the formidable challenges posed by legal setbacks, signaling a critical juncture in its corporate trajectory.
