Why Is Cancer Blood Test-Focused Guardant Health Stock Trading Lower Today?
Portfolio Pulse from Vandana Singh
Guardant Health Inc (NASDAQ: GH) stock is trading lower after the company announced plans to appeal a U.S. District Court verdict in a patent infringement case brought by TwinStrand Biosciences Inc. and the University of Washington. The jury found Guardant Health willfully infringed two patents and awarded $83.4 million in damages, with the possibility of tripling the damages due to willful infringement. Guardant Health disagrees with the decision and plans to file additional motions and appeal.
November 15, 2023 | 7:28 pm
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NEGATIVE IMPACT
Guardant Health Inc faces a significant legal setback with a jury verdict of $83.4 million in damages for patent infringement, which could potentially triple, impacting the company's financials and investor sentiment.
The negative impact on Guardant Health's stock is due to the substantial financial liability from the jury verdict and the uncertainty surrounding the appeal process. The potential for the damages to be tripled adds to the financial risk. This legal issue could overshadow the company's operational performance in the short term and lead to bearish investor sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100