Shares of NeoGenomics Inc (NASDAQ:NEO) jumped 25.4% after a North Carolina federal court ruled in its favor in a patent lawsuit filed by Natera Inc (NASDAQ:NTRA), whose stock declined 2.9% following the decision.
The District Court for the Middle District of North Carolina granted NeoGenomics’ motion for summary judgment, declaring all of Natera’s asserted patent claims invalid for “claiming ineligible subject matter.” The court will dismiss Natera’s claims against NeoGenomics with prejudice and enter a declaratory judgment of invalidity for both challenged patents.
This decision clears the way for NeoGenomics to continue commercializing its RaDaR ST assay (formerly RaDaR 1.1), which is already being offered to biopharma clients. The company has also submitted the assay to the Centers for Medicare & Medicaid Services’ Molecular Diagnostic Services Program for potential clinical reimbursement.
“We are pleased with the Court’s decision to invalidate Natera’s asserted patents. NeoGenomics is committed to providing cancer patients the most comprehensive array of diagnostic testing options to enable the highest quality of personalized care, which includes providing options for their MRD testing,” said Tony Zook, CEO of NeoGenomics.
Natera is reportedly considering next steps, including an appeal and additional enforcement through other patents. The company stressed that the invalidated patents are separate from U.S. Patent No. 11,519,035, which had previously underpinned an injunction against NeoGenomics’ RaDaR v1.0 product. Natera maintains a global portfolio of more than 500 issued or pending patents.
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