In a major patent infringement lawsuit, global cell-free DNA testing leader, Natera Inc., came out on top, following a unanimous verdict by a U.S. District Court jury. The company was awarded significant damages of $96.3 million in lost profits and past royalties from CareDx, Inc. a fellow testing service provider.
The legal battle took place in the U.S. District Court for the District of Delaware, where it was found that CareDx’s products, AlloSure and AlloSeq, had infringed on one of the two patents asserted by Natera. Following this result, the jury granted Natera a sum of $83.7 million for the profits it lost due to the infringement, and an additional $12.6 million for past royalties related to the patent.
As a part of the lawsuit, two patents belonging to Natera were brought into question. However, the jury determined that the purported infringement only pertained to one patent.
Based in Austin, Texas, Natera, a NASDAQ-listed company, is a global leader in cell-free DNA testing. The firm has pioneered DNA diagnostic, prenatal, postnatal, and oncology testing technology. On the other hand, CareDx, Inc. specializes in transplant care, with their innovative testing services for organ transplant recipients.
Specific details about which of Natera’s patents were infringed upon were not publicly disclosed. Both companies did not comment immediately on the case’s outcome. With significant financial fallout from this lawsuit, it remains to be seen how this will shape the dynamic between Natera Inc. and CareDx, Inc. and potentially, the broader industry.
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