European Unified Patent Court Rules in Favor of Bruker and NanoString, Invalidating Patent Asserted By 10x Genomics against NanoString’s CosMx SMI Products

Rhea-AI Summary

Bruker (Nasdaq: BRKR) announced that the European Unified Patent Court (UPC) has ruled in favor of its NanoString business, invalidating European Patent No. 2794928B1 (the '928 Patent') asserted by 10x Genomics against NanoString's CosMx® Spatial Molecular Imager (SMI) products in Europe. This ruling follows a similar decision by the German Federal Patent Court in May 2024, which declared the patent invalid in Germany. The UPC's decision extends the invalidation to France and The Netherlands.

The ruling is subject to appeal. Bruker awaits an additional hearing on a related patent (European Patent 4108782B1) and expects it to be declared invalid as well. The European Patent Office has issued a preliminary opinion considering this patent invalid, with a hearing scheduled for March 18, 2025.

Positive

• UPC ruled in favor of Bruker's NanoString business, invalidating a patent asserted by competitor 10x Genomics
• Invalidation of the patent extends to multiple European countries (Germany, France, The Netherlands)
• Preliminary opinion from EPO suggests another related patent may also be invalid

Negative

• Rulings are subject to appeal, potentially prolonging legal uncertainty
• Ongoing patent disputes may incur significant legal costs for Bruker

Insights

Legal Expert

The UPC's ruling invalidating the 928 Patent in France and The Netherlands is a significant legal victory for Bruker and NanoString. This decision, coupled with the previous German Federal Patent Court ruling, substantially weakens 10x Genomics' patent position in Europe. The invalidation of patents in multiple jurisdictions suggests fundamental issues with the patent's validity.

The UPC Court of Appeal's earlier statement on the 782 Patent, indicating it is "more likely than not" to be invalid, further undermines 10x Genomics' legal strategy. The EPO's preliminary opinion on the 782 Patent's invalidity adds weight to this perspective.

These developments significantly reduce the legal risks for Bruker's CosMx SMI products in key European markets. It also sets a precedent that could influence future patent disputes in the spatial biology field, potentially deterring aggressive patent litigation strategies in this sector.

Market Research Analyst

This legal victory strengthens Bruker's market position in the competitive spatial biology sector. By invalidating patents asserted against its CosMx SMI products, Bruker can continue to sell and develop these products without the threat of patent infringement in key European markets.

The ruling may lead to increased market share for Bruker in Europe, as it removes a significant barrier to product adoption. It could also enhance investor confidence in Bruker's ability to compete effectively in the spatial biology market.

Long-term, this decision could accelerate innovation in the field by reducing patent-related obstacles. It may also lead to more competitive pricing for spatial biology technologies, benefiting research institutions and potentially accelerating scientific progress in this area.

Investors should monitor how this ruling impacts Bruker's sales and market share in Europe, as well as any potential shift in the competitive landscape of the spatial biology market.

BILLERCA, Mass.--(BUSINESS WIRE)-- Bruker Corporation (Nasdaq: BRKR) today announced that the European Unified Patent Court (UPC) has ruled in favor of its NanoString business, invalidating European Patent No. 2794928B1 (the “928 Patent”), which has been asserted by 10x Genomics against NanoString’s CosMx® Spatial Molecular Imager (SMI) products in Europe. Today’s ruling follows the May 2024 decision of the German Federal Patent Court, which declared the 928 Patent invalid and revoked the patent in Germany. An appeal is pending in that case. Today’s decision of the UPC expands on that German invalidity ruling to further invalidate the 928 Patent in France and The Netherlands. The ruling of the UPC is subject to appeal.

“We appreciate the thorough analysis of this patent by the UPC. Today’s ruling marks the third decision of three separate courts in less than a year vindicating our view that the patents being asserted against us by 10x are invalid,” said Todd Garland, President of the Bruker Spatial Biology division. “The UPC’s decision supports our belief that 10x’s claims are meritless and that 10x’s litigation tactics run counter to the interests of the scientific research community. Bruker will build on this legal victory and continue to defend the freedom of scientists to have choices for the best spatial biology solutions for their research.”

In February 2024, the UPC Court of Appeal issued an order based on European Patent 4108782B1 (the “782 Patent”), a second patent being asserted by 10x that is closely related to the 928 Patent. In that order, the Court held that “it is more likely than not that the patent at issue will prove to be invalid,” citing concerns about the obviousness of the patent claims based on the prior art. With today’s UPC ruling invalidating the 928 Patent, Bruker now awaits an additional hearing before the UPC on the 782 Patent and expects that patent to be declared invalid as well. No date has yet been set for that hearing. In parallel European Patent Office (EPO) opposition proceedings, the EPO has already issued a preliminary non-binding opinion in which the 782 Patent as granted is considered to be invalid. A hearing before the EPO is scheduled for March 18, 2025.

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

Bruker (Nasdaq: BRKR) is at the forefront of the post-genomic era, helping scientists and engineers make groundbreaking discoveries that enhance human life. Our high-performance instruments and analytical solutions enable the exploration of life and materials at the molecular, cellular, and microscopic levels. Working closely with customers, we drive innovation, boost productivity, and support success in life sciences, biopharma, microscopy, nanoanalysis, industrial research, and next-gen semiconductor metrology for AI. Bruker provides highly differentiated, cutting-edge systems for preclinical imaging, clinical phenomics, proteomics, multiomics, spatial and single-cell biology, functional structural biology, clinical microbiology, and molecular diagnostics. For more information, please visit www.bruker.com.

Cautionary Statement Regarding Forward-Looking Statements

This communication contains “forward-looking statements.” All statements, other than statements of historical facts, including statements concerning ongoing litigation and appeals; Bruker’s plans, objectives, goals, beliefs, strategy and strategic objectives, future events, business conditions, results of operations, financial position, business outlook, business trends and other information, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” or “will” or the negatives of these terms or variations of them or similar terminology. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those currently anticipated due to a number of risks and uncertainties. Risks and uncertainties include, but are not limited to, expectations regarding litigation outcomes and remedies, the ultimate disposition of the pending litigation, and the impact of the pending litigation on our business and our operations and business outlook. For further discussion of these and other risks and uncertainties, see Bruker’s most recent Form 10-K and Form 10-Q filings with the SEC. Except as required by law, Bruker does not undertake any duty to update forward-looking statements to reflect events after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241017641053/en/

Media:

Kevin Gamber

Vice President, Downstream Marketing

Bruker Spatial Biology

T: +1-314-662-9987

E: kevin.gamber@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 was the outcome of the European Unified Patent Court ruling for Bruker (BRKR)?

The European Unified Patent Court ruled in favor of Bruker's NanoString business, invalidating European Patent No. 2794928B1, which was asserted by 10x Genomics against NanoString's CosMx SMI products in Europe.

Which countries are affected by the UPC's patent invalidation ruling for Bruker (BRKR)?

The UPC's ruling invalidates the patent in France and The Netherlands, in addition to the previous invalidation in Germany by the German Federal Patent Court.

When is the European Patent Office hearing scheduled for the related patent dispute involving Bruker (BRKR)?

The European Patent Office has scheduled a hearing for March 18, 2025, regarding European Patent 4108782B1, which is closely related to the invalidated patent.

What is Bruker's (BRKR) stance on the patent litigation with 10x Genomics?

Bruker believes that 10x's claims are meritless and that their litigation tactics are against the interests of the scientific research community. Bruker intends to continue defending the freedom of scientists to choose the best spatial biology solutions for their research.