Bruker Announces that Injunction Impacting NanoString’s CosMx Spatial Molecular Imager Products in Germany Has Been Suspended Effective Immediately

Rhea-AI Summary

Bruker (Nasdaq: BRKR) announced the suspension of an injunction affecting sales of CosMx™ Spatial Molecular Imager (SMI) products by its NanoString business in Germany. This development is related to ongoing patent litigation with 10x Genomics. The suspension was made possible after Bruker posted a bond authorized by the Munich Higher Regional Court.

The German Higher Regional Court of Munich had previously granted NanoString the right to lift the injunction, citing concerns with the lower Munich Regional Court's May 2023 decision. The Court noted that the lower court had failed to address relevant aspects of the case, including a disputed feature of the patent at issue.

As a result, all CosMx products are now available again to German scientific instrument customers, effective immediately.

Positive

• Suspension of injunction allows resumption of CosMx product sales in Germany
• Higher court ruling favors Bruker's NanoString business in patent dispute
• Restored access to full suite of CosMx products for German customers

Negative

• Ongoing patent litigation with 10x Genomics
• Required to post a bond to suspend the injunction

Legal Expert

The recent suspension of the injunction against NanoString’s CosMx Spatial Molecular Imager in Germany marks an important legal development. The Munich Higher Regional Court’s decision underscores the complexities surrounding patent litigation, particularly in high-tech fields such as molecular imaging. By posting a bond, Bruker ensured the continuation of sales, which is significant for maintaining market presence.

The ruling by the German Federal Patent Court in May 2024 invalidating the patent originally at issue indicates a strong likelihood that NanoString will ultimately prevail in this dispute. For retail investors, this development could alleviate concerns about potential disruptions to revenue streams and market share in the German scientific instrument market. However, it's important to monitor how 10x Genomics responds, as ongoing litigation can still pose risks.

Such legal battles often involve complex patent claims and interpretations. Here, the higher court found deficiencies in the lower court's decision, particularly around the disputed patent feature that had been overlooked. This observation suggests a thorough legal process is underway, which could result in a more permanent resolution favorable to Bruker and NanoString.

Financial Analyst

The suspension of the injunction is a positive financial development for Bruker and its NanoString division. Enabling sales to resume immediately in Germany safeguards a important revenue stream. The CosMx Spatial Molecular Imager is a key product within the burgeoning field of spatial transcriptomics, a sector poised for robust growth.

For investors, the fact that the bond was successfully posted indicates strong liquidity and financial health for Bruker. The ruling also temporarily removes uncertainties about revenue contributions from the German market in upcoming quarters. Given the high functionality and competitive edge of CosMx in the market, the suspension should support sales momentum and customer confidence.

However, investors should remain cautious about the long-term outcomes of this legal dispute. While the current ruling is favorable, the appeal process and any further legal actions by 10x Genomics could still impact future sales and financial projections.

The patent at issue was ruled invalid by the German Federal Patent Court in May 2024

BILLERICA, Mass.--(BUSINESS WIRE)-- Bruker Corporation (Nasdaq: BRKR) today announced that it has posted a bond, as authorized by the Munich Higher Regional Court, in order to suspend an injunction that had been impacting sales of CosMx™ Spatial Molecular Imager (SMI) products by its NanoString business in Germany. This development is connected with ongoing patent litigation with 10x Genomics, during an appeal process in Germany. Effective immediately, all CosMx products are once again available to German scientific instrument customers.

In December 2023, the German Higher Regional Court of Munich cited concerns with the lower Munich Regional Court’s May 2023 decision and granted NanoString the right to have the injunction on sales of CosMx products in Germany lifted, subject to payment of a bond. The Munich Higher Regional Court ruled that suspending enforcement of the injunction was appropriate, since the lower court had failed to address aspects of the case that were relevant to the decision. The Court observed that a disputed feature of the patent at issue was seemingly overlooked by the lower court.

“We are thrilled that our customers in Germany have regained access to our full suite of products for the CosMx instrument, with the highest functionality of any imager available in the spatial transcriptomics market,” said Todd Garland, President of the NanoString division.

About Bruker Corporation – Leader of the Post-Genomic Era (Nasdaq: BRKR)

Bruker is enabling scientists and engineers to make breakthrough post-genomic discoveries and develop new applications that improve the quality of human life. Bruker’s high-performance scientific instruments and high-value analytical and diagnostic solutions enable scientists to explore life and materials at molecular, cellular, and microscopic levels. In close cooperation with our customers, Bruker is enabling innovation, improved productivity, and customer success in post-genomic life science molecular and cell biology research, in applied and biopharma applications, in microscopy and nanoanalysis, as well as in industrial and cleantech research, and next-gen semiconductor metrology in support of AI. Bruker offers differentiated, high-value life science and diagnostics systems and solutions in preclinical imaging, clinical phenomics research, proteomics and multiomics, spatial and single-cell biology, functional structural and condensate biology, as well as in clinical microbiology and molecular diagnostics. For more information, please visit www.bruker.com.

About NanoString

NanoString, a Bruker company, is a leader in spatial biology offering an ecosystem of innovative discovery and translational research tools that empower scientists to map the universe of biology. The GeoMx® Digital Spatial Profiler is a flexible reliable solution, combining the power of whole tissue imaging with gene expression and protein data for spatial whole transcriptomics and proteomics. The CosMx™ Spatial Molecular Imager is a single-cell imaging platform powered by spatial multiomics enabling researchers to map single cells in their native environments to extract deep biological insights and novel discoveries from one experiment. The AtoMx™ Spatial Informatics Platform is a cloud-based informatics solution with advanced analytics and global collaboration capabilities, enabling powerful spatial biology insights anytime, anywhere. At the foundation of our research tools is our nCounter® Analysis System which offers a secure way to easily profile the expression of hundreds of genes, proteins, miRNAs, or copy number variations, simultaneously with high sensitivity and precision. For more information, please visit www.nanostring.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240718861044/en/

Media:

Meg O’Conor

Director, Public Relations

NanoString Business Unit

Bruker Spatial Biology

T: +1-206-602-1768

E: m.oconor-bannecker@bruker.com

Investors:

Joe Kostka

Associate Director, Investor Relations

Bruker Corporation

T: +1-978-313-5800

E: Investor.Relations@bruker.com

Source: Bruker Corporation

FAQ

What is the latest development in Bruker's patent litigation with 10x Genomics regarding CosMx products in Germany?

Bruker has posted a bond to suspend an injunction, allowing the resumption of CosMx Spatial Molecular Imager product sales in Germany, effective immediately.

Why did the German Higher Regional Court of Munich grant NanoString the right to lift the injunction on CosMx products?

The court cited concerns with the lower Munich Regional Court's May 2023 decision, noting that it failed to address relevant aspects of the case and overlooked a disputed feature of the patent at issue.

How does the suspension of the injunction affect Bruker's (BRKR) NanoString business in Germany?

The suspension allows Bruker's NanoString division to resume selling all CosMx products to German scientific instrument customers, restoring access to their full suite of products in the spatial transcriptomics market.

What action did Bruker (BRKR) take to suspend the injunction on CosMx product sales in Germany?

Bruker posted a bond, as authorized by the Munich Higher Regional Court, which led to the immediate suspension of the injunction affecting CosMx product sales in Germany.