In CareDx-Initiated IP Litigation Against Natera, Natera Now Drops 1 of 2 Patents Originally Asserted Against CareDx

Rhea-AI Summary

CareDx, Inc. (NASDAQ: CDNA) announces updates in its ongoing patent battle with Natera. Natera has withdrawn a patent but has filed two variations against CareDx, which it believes are invalid and not infringed. This development follows a jury trial in March 2022 where CareDx was awarded $44.9 million for Natera's false advertising related to the Prospera test. CareDx maintains that its donor-derived cell-free DNA technology, AlloSure, is specifically designed for transplant patients.

Positive

• CareDx awarded $44.9 million in March 2022 for Natera's false advertising.
• Natera withdrew one patent, indicating potential weaknesses in their case.

Negative

• Ongoing litigation can lead to uncertain financial outcomes for CareDx.
• Natera's assertion of two new patents could prolong legal disputes.

Natera Recycles Old IP for New Lawsuits

SOUTH SAN FRANCISCO, Calif., May 17, 2022 (GLOBE NEWSWIRE) -- CareDx, Inc. (Nasdaq: CDNA) – The Transplant Company™ focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers – today announced that Natera has just dropped one of their two patents originally asserted against CareDx. At the same time, Natera asserted two patents that are variations of the original patent that Natera continues to assert against CareDx. CareDx believes all the recycled patents asserted against CareDx are invalid and are not infringed.

These IP filings follow a notable jury trial from March of this year that found Natera intentionally engaged in false advertising in promotion of their Prospera test. The jury unanimously awarded CareDx $44.9M in punitive and compensatory damages. The evidence at trial, including emails from the most senior levels of Natera and its CEO, showed a systematic approach to mislead transplant clinicians.

“I am proud of CareDx being 100% focused on transplant for more than two decades,” said Dr. Reg Seeto, CEO and President of CareDx. “Importantly, because we have developed a transplant specific test, we ensured it covers every single somatic chromosome.”

CareDx developed the first and leading donor-derived cell-free DNA technology with AlloSure for transplant patients. AlloSure was developed specifically for transplant patient care, not for prenatal or oncology testing. CareDx initiated an IP lawsuit against Natera in March 2019, and continues to believe Natera is infringing multiple CareDx patents.

About CareDx – The Transplant Company
CareDx, Inc., headquartered in South San Francisco, California, is a leading precision medicine solutions company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. CareDx offers testing services, products, and digital healthcare solutions along the pre- and post-transplant patient journey and is the leading provider of genomics-based information for transplant patients. For more information, please visit: www.CareDx.com.

Forward Looking Statements
This press release includes forward-looking statements related to CareDx, Inc., including statements regarding the potential results that may be achieved in CareDx’s ongoing patent litigation with Natera (the “Litigation”). These forward-looking statements are based upon information that is currently available to CareDx and its current expectations, speak only as of the date hereof, and are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks related to the Litigation; general economic and market factors; and other risks discussed in CareDx’s filings with the SEC, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed by CareDx with the SEC on February 24, 2022, the quarterly report on Form 10-Q for the first quarter of 2022 ended on March 31, 2022 filed by CareDx with the SEC on May 5, 2022, and other reports that CareDx has filed with the SEC. Any of these may cause CareDx’s actual results, performance or achievements to differ materially and adversely from those anticipated or implied by CareDx’s forward-looking statements. CareDx expressly disclaims any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements.

CONTACTS:
CareDx, Inc.
Sasha King
Chief Marketing Officer
415-287-2393
sking@CareDx.com

Investor Relations
Ian Cooney
(415) 722-4563
investor@CareDx.com

FAQ

What recent legal actions involve CareDx (CDNA) and Natera?

CareDx is currently in ongoing patent litigation with Natera, which has recently filed two new patents.

What was the outcome of the March 2022 jury trial involving CareDx?

The jury unanimously awarded CareDx $44.9 million for damages due to Natera's false advertising.

How does CareDx view the new patents filed by Natera?

CareDx believes that the new patents are invalid and do not infringe on Natera's claims.

What technology does CareDx specialize in?

CareDx specializes in donor-derived cell-free DNA technology, particularly with its product AlloSure.