Why Is Life Science Company NanoString Stock Trading Lower Today?
Portfolio Pulse from Vandana Singh
NanoString Technologies Inc (NSTG) stock dropped after a jury ruled in favor of 10x Genomics Inc (TXG) in a patent infringement case, awarding over $31 million in damages for willful infringement by NanoString's GeoMx products. The jury's decision is based on sales from May 6, 2021, to October 13, 2023. 10x Genomics seeks further damages, royalties, and a permanent injunction against GeoMx products in the U.S. NanoString withdrew its FY23 and Q4 financial guidance due to the litigation outcome. TXG shares rose by 3.84%, while NSTG plummeted by 48.2%.
November 20, 2023 | 4:29 pm
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NEGATIVE IMPACT
NanoString Technologies Inc's stock plummeted after a jury ruled in favor of 10x Genomics in a patent infringement case, with over $31 million in damages awarded against NanoString's GeoMx products. The company also withdrew its financial guidance for FY23 and Q4.
The significant drop in NSTG's stock price is a direct result of the jury's verdict, which not only involves a substantial financial penalty but also raises concerns about future sales and potential injunctions. The withdrawal of financial guidance further undermines investor confidence.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
Shares of 10x Genomics Inc rose by 3.84% following a favorable jury verdict in a patent infringement lawsuit against NanoString, with over $31 million in damages awarded for infringement by NanoString's GeoMx products.
The rise in TXG's stock price can be attributed to the positive outcome of the patent infringement lawsuit, which not only results in a financial gain but also reinforces the company's intellectual property rights. This may also lead to future royalties and strengthen their market position.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90