U.S. District Court Awards 10x Genomics Permanent Injunction in Patent Infringement Lawsuit Against Bruker Corporation's GeoMx Products

Rhea-AI Summary

Bruker (BRKR) faces a permanent injunction in Delaware's U.S. District Court regarding its GeoMx products, following a patent infringement lawsuit by 10x Genomics. The Court will enter the injunction in January 2025, prohibiting Bruker from making, selling, or offering GeoMx Digital Spatial Profiler products in the United States.

The Court affirmed the $31 million damages from the November 2023 jury verdict, plus supplemental damages and interest. Notably, existing GeoMx users who installed instruments before November 18, 2023, can continue purchasing reagents for ongoing research. The jury found that the GeoMx products willfully infringed seven patents licensed to 10x Genomics by Prognosys.

Positive

• None.

Negative

• Prohibited from making and selling GeoMx Digital Spatial Profiler products in the US starting January 2025
• Must pay $31 million in damages plus additional supplemental damages and interest
• Found guilty of willful patent infringement on seven patents

Insights

Legal Expert

The U.S. District Court ruling represents a significant legal setback for Bruker . The permanent injunction effectively blocks Bruker from commercializing the GeoMx product line in the United States, which they recently acquired from NanoString. The $31 million damages award, plus supplemental damages and interest, creates substantial financial liability. The Court's finding of willful infringement is particularly damaging, as it validates 10x Genomics' intellectual property rights across seven patents.

The carve-out provision for existing GeoMx users installed before November 2023 demonstrates strategic litigation management, balancing IP protection with research continuity. However, this ruling severely restricts Bruker's ability to expand their spatial biology business segment in the U.S. market, potentially impacting their competitive position and future revenue streams from this technology.

Market Research Analyst

The ruling creates significant market implications in the spatial biology sector. Bruker's recent acquisition of NanoString's assets, including the now-restricted GeoMx platform, faces immediate commercialization challenges. The injunction effectively limits Bruker's ability to compete in the growing spatial biology market, estimated to reach $2.1 billion by 2025.

10x Genomics emerges strengthened, with enhanced market position and validated IP portfolio. The decision particularly impacts Bruker's strategic expansion plans in spatial biology, forcing potential portfolio restructuring. While existing customers can continue operations, new customer acquisition for GeoMx products is halted, likely benefiting competitors in this high-growth market segment. This setback could prompt Bruker to seek alternative technologies or licensing agreements to maintain market presence.

PLEASANTON, Calif., Dec. 23, 2024 /PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG), a leader in single cell and spatial biology, announced today it had secured a permanent injunction in the U.S. District Court for the District of Delaware against the GeoMx products sold by Bruker Corporation (Nasdaq: BRKR), which acquired the product line from NanoString Technologies. To minimize the risk of disruption to ongoing research, 10x Genomics requested a carve-out for GeoMx users who installed an instrument prior to the trial in November 2023.

The injunction, which the Court said it will enter in January 2025, is expected to prohibit Bruker from making, using, selling or offering to sell in the United States its GeoMx Digital Spatial Profiler and associated instruments, reagents and services for RNA and protein detection. At the request of 10x Genomics, the injunction will not block ongoing research by researchers who installed a GeoMx instrument prior to November 18, 2023. Such customers can continue to purchase GeoMx reagents for use with existing GeoMx instruments for purposes of continuing their ongoing research. The Court found that making such an exception for ongoing research strikes a "workable balance between protecting the patentee's rights and protecting the public from the injunction's adverse effects." In addition, the Court affirmed the $31 million damages awarded by the November 2023 jury verdict, as well as supplemental damages and interest that will be added to the total damages when final judgment is entered.  

"Today's decision helps to safeguard our decade-long investment in innovation and ensures we can continue to develop groundbreaking technologies that help our customers revolutionize science," said Eric Whitaker, Chief Legal Officer at 10x Genomics. "10x exists to fuel scientific progress – not stifle it – and that is why we've done our utmost to ensure this injunction was structured to protect both our intellectual property and existing GeoMx customers' ongoing research." 

The Court recognized the harm NanoString's infringing conduct caused 10x when it wrote in its ruling, "Having been careful not to license its technology, 10x suffers when it proclaims itself as an innovator in spatial genomics but a competitor is using the same innovative, patented technology."

Today's Court decision follows a November 2023 jury verdict that found that NanoString's GeoMx products willfully infringed seven patents exclusively licensed to 10x Genomics by Prognosys. During the trial, the jury heard testimony from the sole inventor of the patents, Illumina co-founder Mark Chee, and NanoString CEO Brad Gray and NanoString CSO Joe Beechem. After hearing all of the evidence, the jury determined that all seven patents had been infringed by NanoString, that each patent was valid, that NanoString willfully infringed those patents and that monetary damages were owed to 10x for the infringement of all seven patents. In affirming the jury's finding that NanoString willfully infringed, the Court relied on the evidence showing that NanoString knew or was willfully blind that its acts would cause infringement of 10x's rights.

The asserted patents in Case No. 21-cv-653-MFK include (a) U.S. Patent No. 10,472,669; (b) U.S. Patent No. 10,961,566; (c) U.S. Patent No. 10,983,113; (d) U.S. Patent No. 10,996,219; (e) U.S. Patent No. 11,001,878; (f) U.S. Patent No. 11,008,607 and (g) U.S. Patent No. 11,293,917.

About 10x Genomics
10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world's understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn or X (Twitter).

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. All statements included in this press release, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "see," "estimate," "predict," "potential," "would," "likely," "seek" or "continue" or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding litigation and remedies as well as possible outcomes of litigation. These forward-looking statements do not reflect that our success will depend on our ability to obtain, maintain and protect our intellectual property rights, intellectual property litigation could be expensive, time-consuming, unsuccessful and could interfere with our ability to develop, manufacture and commercialize our products or technologies, litigation outcomes are unpredictable or there may be changes in our litigation strategy. These statements are based on management's current expectations, forecasts, beliefs, assumptions and information currently available to management. Actual outcomes and results could differ materially from these statements due to a number of factors and such statements should not be relied upon as representing 10x Genomics, Inc.'s views as of any date subsequent to the date of this press release. 10x Genomics, Inc. disclaims any obligation to update any forward-looking statements provided to reflect any change in 10x Genomics' expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. The material risks and uncertainties that could affect 10x Genomics, Inc.'s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recently-filed 10-K for the fiscal year ended December 31, 2023 and elsewhere in the documents 10x Genomics, Inc. files with the Securities and Exchange Commission from time to time.

Disclosure Information
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Contacts
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SOURCE 10x Genomics, Inc.

FAQ

What is the financial impact of the patent lawsuit on Bruker (BRKR)?

Bruker must pay $31 million in damages, plus additional supplemental damages and interest, as affirmed by the U.S. District Court.

When will the permanent injunction against BRKR's GeoMx products take effect?

The permanent injunction will be entered in January 2025, prohibiting Bruker from making, using, selling or offering GeoMx products in the United States.

Can existing BRKR GeoMx customers continue using their products after the injunction?

Yes, customers who installed GeoMx instruments before November 18, 2023, can continue purchasing reagents for ongoing research.

How many patents did BRKR's GeoMx products infringe?

The jury found that GeoMx products willfully infringed seven patents exclusively licensed to 10x Genomics by Prognosys.