Natera Announces Next Phase of CareDx Patent Infringement Litigation Seeking Royalty For All Ongoing And Future AlloSure Tests

Rhea-AI Summary

Natera, Inc. (NTRA) progresses in patent infringement litigation against CareDx with a $96.3 million jury verdict in lost profits and past royalties. The U.S. District Court will decide on future royalties for ongoing AlloSure testing. Discovery and briefing to continue till summer 2024.

Legal Expert

The recent legal developments in the patent infringement case between Natera, Inc. and CareDx hold significant implications for both companies involved. The determination of future royalties by the U.S. District Court for the District of Delaware could potentially establish a precedent for how intellectual property disputes in the biotechnology sector are resolved, particularly regarding cell-free DNA testing technologies. The awarded $96.3 million in damages signifies a substantial financial impact, reflecting the value attributed to the patented technology and the infringement's effect on Natera's profits.

Moreover, the validity of the patents as upheld by the jury suggests a strong proprietary position for Natera, which could deter future infringements and solidify its competitive edge. However, the ongoing legal expenses and the uncertainty of the outcome of future proceedings may continue to exert financial pressure on both entities. Stakeholders should closely monitor the developments as they could affect the companies' operational strategies and market dynamics within the biotech industry.

Financial Analyst

The jury's verdict in favor of Natera and the substantial damages awarded are likely to have significant financial repercussions for CareDx. The prospect of additional royalties for future infringements post-August 2023 could further strain CareDx's financials, potentially affecting its profitability and cash flow. Investors should consider the impact of these potential future royalties on CareDx's earnings, as well as the implications for Natera's revenue streams.

It is essential to analyze the broader market reaction to this news, as it could influence stock performance for both companies. Natera's bolstered financial position may attract investor confidence, while CareDx could face skepticism regarding its financial resilience and ability to innovate within legal constraints. The outcome of the next phase of proceedings will be critical in assessing the long-term financial health and strategic positioning of both companies in the competitive landscape of DNA testing services.

AUSTIN, Texas--(BUSINESS WIRE)-- Natera, Inc. (NASDAQ: NTRA), a global leader in cell-free DNA testing, today announced the next phase of proceedings in its patent infringement litigation against CareDx. The U.S. District Court for the District of Delaware will now determine if CareDx owes a royalty for future infringement related to ongoing and future AlloSure testing occurring after August 2023.

This follows a Jan. 2024 jury verdict in favor of Natera, in which the jury awarded $96.3 million in damages to Natera in lost profits and past royalties through August 2023. The jury found that CareDx’s AlloSure and AlloSeq tests infringed one of the two Natera patents asserted against CareDx and that all asserted claims of both patents are valid on various grounds.

Discovery and briefing for this next phase are expected to last through the end of summer 2024.

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 Austin, Texas and San Carlos, California. For more information, visit www.natera.com.

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/20240227183728/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.

What is the ticker symbol for Natera, Inc.?

The ticker symbol for Natera, Inc. is NTRA.

What was the jury verdict in favor of Natera in the patent infringement litigation against CareDx?

The jury awarded Natera $96.3 million in damages in lost profits and past royalties through August 2023.

What did the jury find regarding CareDx's AlloSure and AlloSeq tests?

The jury found that CareDx's AlloSure and AlloSeq tests infringed one of the two Natera patents asserted against CareDx.

What is the next phase in the patent infringement litigation against CareDx?

The U.S. District Court will determine if CareDx owes a royalty for future infringement related to ongoing and future AlloSure testing occurring after August 2023.

When is the discovery and briefing expected to last for the next phase of proceedings?

Discovery and briefing for this next phase are expected to last through the end of summer 2024.