🕒 Created

Guardant Health Inc. loses patent battle to TwinStrand Biosciences and the University of Washington, facing $245.2 million in damages.

Guardant Health Inc. shares fell 4.4% on Monday after the U.S. District Court for the District of Delaware awarded TwinStrand Biosciences and the University of Washington more than $245.2 million in damages, accrued royalties, and interest. The legal victory resolves a patent infringement suit dating back to August 2021, where the court ruled that Guardant Health Inc. products infringed on TwinStrand Biosciences' duplex sequencing technology. Guardant Health Inc. will also be required to pay a 6% royalty on sales of 11 key products, including the Guardant360, Reveal, and Shield tests, through March 15, 2033. Despite the judgment, Guardant Health Inc. Chief Legal Officer John Saia expressed confidence in the company's intellectual property and plans to appeal the decision. Market analysts note that Guardant Health Inc. is currently significantly overvalued compared to its intrinsic value. The company remains cash-flow-negative, and recent bearish insider trading has further highlighted concerns regarding the stock's current pricing relative to its financial performance.

Sources