Shares of CareDX, a prominent company in the biotechnology industry, dropped 7% to $8.43 following a unanimous verdict from a jury in the U.S. District Court for the District of Delaware. The verdict ruled in favor of Natera, another leading player in the field, in their patent infringement case against CareDX.
Impact on CareDX Shares
The negative outcome of the trial has further exacerbated the decline in CareDX's shares, which closed 17% lower in Friday's session. Over the past year, the company's shares have decreased by 44%.
Jury Awards Damages to Natera
The jury awarded Natera a considerable sum of $83.7 million in lost profits and an additional $12.6 million in past royalties. This decision was made after determining that two of CareDX's products, namely AlloSure and AlloSeq, infringed on one of Natera's patents. Furthermore, the jury found that all claims made by both patents were valid, providing an advisory verdict to the judge under 35 U.S.C. Sec. 101.
Implications for Future Proceedings
Moving forward, a schedule will be established to further evaluate whether CareDX's future sales of updated versions of AlloSeq and AlloSure will also infringe upon the patents that Natera has asserted. Notably, Natera had previously succeeded in nullifying three of CareDX's patents during a separate lawsuit initiated by CareDX. This victory for Natera was eventually confirmed on appeal, solidifying their position.