10x Genomics, Inc. (NASDAQ: TXG) experienced a notable uptick of 5.19%, reaching $45.03 in the extended trading session on Tuesday. During the regular session, the stock faced a marginal decline of 1.40%, concluding at $42.81. The after-hours surge in TXG stock ensued subsequent to a significant development in ongoing patent infringement litigation.
In a recent announcement, 10x Genomics (TXG) disclosed a unanimous verdict in its favor from a jury in the U.S. District Court for the District of Delaware. The verdict pertained to a patent infringement suit initiated by 10x against NanoString Technologies, specifically concerning the GeoMx products.
The jury, in its decision, determined that NanoString’s GeoMx Digital Spatial Profiler and associated components for RNA and protein detection willfully infringed upon all seven patents asserted by Prognosys and exclusively licensed to 10x Genomics.
The jury, acknowledging the infringement, awarded damages exceeding $31 million for sales of the contested GeoMx products spanning from May 6, 2021, to October 13, 2023. In the aftermath of the trial, 10x Genomics intends to pursue ongoing royalties for NanoString’s willful infringement extending beyond October 13, 2023.
TXG is also seeking treble damages and attorney’s fees, along with a permanent injunction against the sale, use, and offering for sale of GeoMx products in the United States. Additionally, the company is seeking pre- and post-judgment interest.
Remarkably, over the past six months, three distinct courts have determined that both NanoString’s CosMx and GeoMx products infringe upon nine separate patents held by 10x Genomics. In light of these rulings, it is suggested that NanoString dispense with its assertion of confidence in non-infringement and patent invalidity.
This verdict marks the third instance in the past six months wherein NanoString has been adjudged to infringe upon 10x Genomics patents. Earlier this year, both the European Unified Patent Court (UPC) and the Munich Regional Court ruled in favor of 10x Genomics, issuing injunctions against NanoString’s infringing CosMx Spatial Molecular Imager instruments and CosMx reagents for RNA detection.
