PLEASANTON, Calif. - 10x Genomics, Inc. (NASDAQ:TXG), a key player in single cell and spatial biology with a market capitalization of $1.8 billion, announced today that it has obtained a permanent injunction against Bruker (NASDAQ:BRKR) Corporation's (NASDAQ:BRKR) GeoMx products, which were previously part of NanoString Technologies' portfolio. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet, despite its shares declining by about 75% over the past year. The U.S. District Court for the District of Delaware will officially enter the injunction in January 2025, prohibiting Bruker from manufacturing, using, selling, or offering to sell its GeoMx Digital Spatial Profiler and related instruments, reagents, and services within the United States for RNA and protein detection.
The injunction, however, includes a specific carve-out for researchers who had installed a GeoMx instrument before the trial date of November 18, 2023. These users will be allowed to continue purchasing GeoMx reagents for their ongoing research projects. This carve-out was requested by 10x Genomics to minimize the impact of the injunction on existing scientific work. The Court acknowledged this approach as a "workable balance" that protects patent rights while considering the public interest.
The Court's decision also upheld the $31 million in damages previously awarded to 10x Genomics by a jury verdict in November 2023. Additional supplemental damages and interest will be included in the final judgment amount. This legal victory comes at a crucial time for the company, which InvestingPro analysis shows has maintained a healthy gross profit margin of nearly 67% despite current market challenges. The company's current ratio of 4.9 indicates strong ability to meet short-term obligations. The legal dispute centered on seven patents exclusively licensed to 10x Genomics, which the jury found NanoString's GeoMx products had willfully infringed.
Eric Whitaker, Chief Legal Officer at 10x Genomics, stated that the decision reinforces the company's commitment to innovation and its efforts to protect intellectual property while supporting ongoing scientific research. The Court also recognized the harm to 10x Genomics' reputation as an innovator caused by NanoString's infringement.
The case, identified as No. 21-cv-653-MFK, involves patents that are fundamental to 10x Genomics' technologies in spatial genomics. This legal victory is part of the company's broader mission to advance human health through its integrated solutions in single cell and spatial biology.
Today's announcement is based on a press release statement and provides a glimpse into the ongoing patent disputes within the biotechnology industry. The information reflects the current legal standing and the implications for both companies involved. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting price targets up to $30. Subscribers to InvestingPro can access the comprehensive Pro Research Report for 10x Genomics, along with 7 additional ProTips and detailed financial metrics that provide deeper insights into the company's potential.
In other recent news, life sciences technology company 10x Genomics reported a 1% year-over-year decline in third-quarter revenue in 2024, attributed to sales restructuring and cautious customer spending in a challenging macroeconomic environment. Despite this, the company launched new products like GEM-X Flex (NASDAQ:FLEX) and Chromium Xo, aimed at making single-cell analysis more accessible and reported a 10% increase in consumables revenue. Amid these developments, the company is undergoing commercial restructuring, aiming to improve its organizational effectiveness by mid-2024.
The company's full-year revenue is projected to be between $595 million and $605 million, reflecting a 3% decrease from the previous year. However, the adoption of new products like Visium CytAssist and Xenium 5K, along with positive reorder trends, indicate potential for growth. Despite a 1% decline in Q3 revenue and a 45% drop in instruments revenue, the company's management, including CEO Serge Saxonov, remains confident about the underlying demand for their products and expects revenue growth in the latter half of 2024, provided macroeconomic conditions stabilize.
In response to a query from Matt Sykes of Goldman Sachs, Saxonov expressed confidence in the sales team's morale and their ability to execute strategies effectively by mid-2024. These recent developments reflect 10x Genomics' commitment to its strategic initiatives and enhancing product offerings despite current market challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.