lawsuit of NanoString Technologies

NanoString Technologies Stock Plunges After Patent Lawsuit Loss to 10x Genomics

In a landmark decision, a jury at the US District Court for the District of Delaware has delivered a unanimous verdict favoring 10x Genomics in a patent infringement lawsuit filed against NanoString Technologies, Inc. The ruling, announced on Monday, found that NanoString’s GeoMx products willfully infringed upon all seven patents asserted by Prognosys and exclusively licensed to 10x Genomics. This legal battle has sent shockwaves through the stock market, causing a substantial decline in NanoString Technologies’ stock value.

The jury, in its verdict, awarded over $31 million in damages for sales of NanoString’s GeoMx products from May 6, 2021, through October 13, 2023. Notably, the stock of NanoString Technologies experienced a sharp decline on Monday morning, opening at $0.78, a significant drop from the $1.28 closing price on Friday.

At the time of this publication, NanoString Technologies Inc stock (NSTG) has witnessed a decline.
NanoString Technologies Inc
Current Price: $0.68
Change : -0.65
Change (%): (-49.04%)
Volume: 6.6M
Source: Tomorrow Events Market Data

Following this ruling, 10x Genomics is set to pursue post-trial actions, seeking ongoing royalties for NanoString’s willful infringement beyond October 13, 2023, treble damages, attorney’s fees, a permanent injunction against GeoMx product sales in the United States, and pre- and post-judgment interest.

Eric Whitaker, Chief Legal Officer at 10x Genomics, highlighted the significance of the verdict, stating, “In the last six months, three separate courts have found that both NanoString’s CosMx and GeoMx products infringe nine separate 10x patents.” He emphasized the importance of protecting patents to advance innovation and science.

During the lawsuit trial, the jury heard testimony from key figures, including Mark Chee, the sole inventor of the patents and Illumina co-founder, NanoString Technologies CEO Brad Gray, and NanoString CSO Joe Beechem. The unanimous decision confirmed NanoString’s willful infringement and recognized the validity of each of 10x’s seven patents.

For a patent to be willfully infringed, the jury had to determine that NanoString acted in reckless disregard of 10x’s rights, supported by evidence of malicious, deliberate, or bad faith actions.

This ruling marks the third time in six months that NanoString has been found to infringe 10x Genomics patents. Previous decisions by the European Unified Patent Court and the Munich Regional Court resulted in injunctions against NanoString’s infringing CosMx Spatial Molecular Imager instruments and CosMx reagents for RNA detection.

It is worth noting that a separate suit is currently pending against NanoString in the U.S. District Court for the District of Delaware. In this ongoing legal battle, 10x Genomics alleges that NanoString’s CosMx Spatial Molecular Imager and associated instruments, reagents, and services infringe multiple patents.

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