Guardant Hit With $245M Patent Verdict, 6% Royalty on Key Cancer Tests
GH has more than doubled off its 52-week low of $53.4.
Summary
A Delaware federal court entered final judgment ordering Guardant Health to pay $245.2 million to TwinStrand Biosciences and the University of Washington for willfully infringing DNA sequencing patents. The ruling upholds a 2023 jury verdict and adds a 6% royalty on U.S. sales of 11 products, including Guardant360 CDx, Guardant Reveal, and Shield, until the patents expire in March 2033. TwinStrand says those products accounted for about 90% of Guardant's revenue during the infringement period, making the royalty a material ongoing cost. The judgment includes $83.4M in original damages, $19.5M supplemental, $119.4M accrued royalties, and $22.9M interest. Guardant's motions to overturn the verdict or get a new trial were denied. This is a significant legal setback for a company trading near its 52-week high, and the royalty obligation will pressure margins on its core testing franchise for years.
At the time of this announcement, GH was trading at $170.05 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $22.9B. The 52-week trading range was $53.40 to $176.58. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.