Guardant Faces $245 Million Patent Judgment
A US federal court has ordered Guardant Health to pay more than $245.2 million in a patent dispute involving DNA sequencing technology.
TwinStrand Biosciences and the University of Washington won the case.
The US District Court for the District of Delaware entered its final judgment on August 21.
The ruling upheld a 2023 jury decision against Guardant.
Court Finds Guardant Infringed Patents
A jury previously found that Guardant willfully infringed two patents linked to TwinStrand’s DNA sequencing technology.
Guardant had challenged the verdict and sought a new trial.
However, the court rejected those efforts, according to TwinStrand.
The latest judgment also upheld the validity of the disputed patent claims.
Judgment Includes Multiple Payments
The total judgment includes several components.
The court awarded $83.4 million in original damages.
It also included $19.5 million in supplemental damages.
Accrued royalties added another $119.4 million.
Pre- and post-judgment interest accounted for $22.9 million.
Together, those amounts pushed the judgment above $245 million.
Guardant Plans to Appeal
Guardant strongly disagrees with the ruling.
The company’s chief legal officer, John Saia, said Guardant will promptly appeal the decision.
He said the company remains confident in its intellectual property and research and development work.
Guardant expects to defend its position during the appeal process.
The legal battle could therefore continue beyond the current judgment.
Court Sets 6% Royalty Rate
The court also ordered Guardant to pay a 6% royalty on US sales of 11 products and services.
That royalty will apply until the relevant patents expire in March 2033.
TwinStrand said the products covered by the ruling generated about 90% of Guardant’s revenue during the infringement period.
That makes the decision particularly significant for the genomics company.
Cancer Tests Among Products in Dispute
Several Guardant products and services fall under the court ruling.
They include Guardant360 CDx, Guardant Reveal and the Shield cancer test.
Other cancer testing and genomics services also appear in the judgment.
Guardant said current versions of Guardant Reveal and Shield use updated technology.
As a result, the current versions are excluded from the order and potential future royalties.
TwinStrand Technology Targets Rare Mutations
TwinStrand developed its patented Duplex Sequencing technology at the University of Washington.
The technology aims to identify rare genetic mutations with greater accuracy than conventional DNA sequencing methods.
Researchers can use the technology in several areas.
These include cancer research, medical diagnostics and drug development.
The technology’s ability to detect rare mutations makes it valuable for genomic research.
Case Could Affect Genomics Industry
The Guardant DNA patent dispute highlights the importance of intellectual property in the rapidly developing genomics industry.
DNA sequencing companies rely heavily on proprietary technologies.
Patent disputes can therefore have significant financial consequences.
The large judgment against Guardant could also attract attention from other companies developing advanced sequencing and cancer-testing technologies.
Guardant’s Legal Battle Continues
Guardant now faces a substantial financial judgment while preparing its appeal.
The company maintains that its intellectual property and research support its position.
Meanwhile, TwinStrand has secured a ruling that protects its patents and provides significant financial compensation.
The case is likely to remain closely watched as Guardant challenges the decision through the appeals process.
