Jury Rules in Favor of Natera in Patent Infringement Lawsuit Against CareDx; Awards $96.3 Million in Damages to Natera in Lost Profits and Past Royalties
- Natera has been awarded a substantial amount in lost profits and past royalties
- The jury found all asserted claims of Natera's patents to be valid
- Natera has more than 400 issued or pending patents across organ health, oncology, and women's health
- Future sales of new versions of AlloSeq and AlloSure may infringe Natera's patents, leading to potential legal liabilities for CareDDx
Insights
The recent verdict in favor of Natera in the patent infringement case against CareDx holds significant implications for the intellectual property landscape within the biotechnology sector. The jury's decision to award substantial damages in the form of lost profits and past royalties underscores the value attributed to proprietary technology in this field. It is a clear signal to the market about the protection of innovation and could set precedents for future patent infringement cases.
Furthermore, the advisory verdict regarding the validity of the patents under 35 U.S.C. Sec. 101, which pertains to patent-eligible subject matter, reinforces the strength of Natera's patent portfolio. This outcome not only impacts CareDx by potentially limiting their ability to sell the infringing products but also serves as a deterrent to other companies considering the use of patented technology without authorization.
The awarded damages of $83.7 million and $12.6 million for lost profits and past royalties, respectively, represent a substantial financial gain for Natera and a corresponding liability for CareDx. This verdict could lead to a reassessment of Natera's market valuation, given the affirmation of their patent claims and the added revenue from the damages. Investors will likely monitor the upcoming proceedings closely to determine the potential impact on future sales and the overall financial health of both companies.
It is also critical to consider the long-term implications of this verdict on CareDx's business operations and product offerings. If future sales of new versions of AlloSeq and AlloSure are found to infringe upon Natera's patents, CareDx may face additional financial liabilities or be compelled to alter their product strategy, which could affect their revenue and market position.
The outcome of this case may influence the competitive dynamics within the cell-free DNA testing market. Natera's victory not only enhances its competitive edge by affirming its intellectual property rights but also potentially hinders CareDx's ability to compete in the same space. The decision could lead to a shift in market shares as healthcare providers and patients may opt for products with established legal standing.
Moreover, the case highlights the importance of a robust patent strategy as a key differentiator in the biotech industry. Companies with strong patent protection can leverage it to secure their market position and deter competitors. This verdict may encourage other firms to invest more heavily in patenting their innovations, thereby intensifying the race for intellectual property within the industry.
Liability for future sales to be determined
The jury awarded Natera
Previously, Natera successfully invalidated all three of CareDx’s patents that were asserted by CareDx against Natera in a separate lawsuit. The invalidity of CareDx’s patents was affirmed on appeal.
The Company stated: “We are pleased with the jury’s verdict and will continue to deliver innovations backed by rigorous science to improve care for transplant patients.”
Natera has more than 400 issued or pending patents across organ health, oncology and women’s health.
About Natera
Natera™ is a global leader in cell-free DNA testing, dedicated to oncology, women’s health, and organ health. We aim to make personalized genetic testing and diagnostics part of the standard of care to protect health, and inform earlier, more targeted interventions that help lead to longer, healthier lives. Natera’s tests are validated by more than 180 peer-reviewed publications that demonstrate high accuracy. Natera operates ISO 13485-certified and CAP-accredited laboratories certified under the Clinical Laboratory Improvement Amendments (CLIA) in
Forward-Looking Statements
All statements other than statements of historical facts contained in this press release are forward-looking statements and are not a representation that Natera’s plans, estimates, or expectations will be achieved. These forward-looking statements represent Natera’s expectations as of the date of this press release, and Natera disclaims any obligation to update the forward-looking statements. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including with respect to developments in matters under dispute or litigation, the scope of protection we establish and maintain for, and developments or disputes concerning, our intellectual property or other proprietary rights, and our expectations of the benefits of our tests and product offerings to patients, providers and payers. Additional risks and uncertainties are discussed in greater detail in “Risk Factors” in Natera’s recent filings on Forms 10-K and 10-Q and in other filings Natera makes with the SEC from time to time. These documents are available at www.natera.com/investors and www.sec.gov.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240129057731/en/
Investor Relations: Mike Brophy, CFO, Natera, Inc., 510-826-2350, investor@natera.com
Media: Lesley Bogdanow, VP of Corporate Communications, Natera, Inc., pr@natera.com
Source: Natera, Inc.
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