U.S. court orders Guardant to pay $245 million in DNA sequencing patent dispute

• The $245.2 million judgment includes $83.4 million in original damages, $19.5 million in supplemental damages, $119.4 million in accrued royalties, and $22.9 million in interest
• Guardant must pay a 6% royalty on U.S. sales of 11 infringing products until patent expiration in March 2033, covering major offerings like Guardant360 CDx, Guardant Reveal, and the Shield cancer test
• The court rejected Guardant's attempts to overturn the verdict or obtain a new trial, and upheld the validity of TwinStrand's Duplex Sequencing technology patents developed at the University of Washington

Summary

Court Ruling: A U.S. District Court in Delaware ordered Guardant Health to pay $245.2 million to TwinStrand Biosciences and the University of Washington for willfully infringing DNA sequencing technology patents. The final judgment was entered on August 21.

Financial Breakdown:

• $83.4 million in original damages
• $19.5 million in supplemental damages
• $119.4 million in accrued royalties
• $22.9 million in pre- and post-judgment interest
• 6% ongoing royalty on U.S. sales of 11 infringing products until patent expiration in March 2033

Products Affected: The ruling covers major Guardant products including Guardant360 CDx, Guardant Reveal, and the Shield cancer test, representing approximately 90% of Guardant's revenue during the infringement period.

Legal Context: The court upheld findings that Guardant willfully infringed two patents related to TwinStrand's Duplex Sequencing technology and rejected Guardant's attempts to overturn the verdict or obtain a new trial. Patent validity was also affirmed.

Technology: TwinStrand's Duplex Sequencing technology, developed at the University of Washington, detects rare genetic mutations with higher accuracy than conventional DNA sequencing methods. It is utilized in cancer research, diagnostics, and drug development.

Market Implications: This substantial judgment significantly impacts Guardant's financial position and ongoing operations, given the affected products comprise the vast majority of its revenue. The 6% royalty obligation through 2033 will create a long-term financial burden, potentially affecting profitability and competitive positioning in the cancer diagnostics and genomics sector.