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

• The infringed products, including Guardant360 CDx and Shield cancer test, accounted for approximately 90% of Guardant's revenue during the infringement period
• Total damages break down to $83.4 million original damages, $119.4 million in accrued royalties, $19.5 million supplemental damages, and $22.9 million in interest
• The court rejected Guardant's attempts to overturn the verdict and upheld the validity of TwinStrand's Duplex Sequencing technology patents, which detect rare genetic mutations with greater accuracy than conventional methods

Summary: Guardant Health Ordered to Pay $245M in Patent Infringement Case

A U.S. District Court in Delaware has ordered Guardant Health to pay over $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, 2024.

Key Financial Details:

• Total judgment: $245.2 million, comprising:
• $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

Ongoing Royalties:

The court mandated a 6% royalty on U.S. sales of 11 infringing Guardant products and services until patent expiration in March 2033.

Products Affected:

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

Legal Outcome:

The court rejected Guardant's attempts to overturn the verdict or obtain a new trial, while upholding the validity of TwinStrand's patent claims involving two patents related to DNA sequencing technology.

Technology at Issue:

TwinStrand's Duplex Sequencing technology, developed at the University of Washington, enables detection of rare genetic mutations with superior accuracy compared to conventional DNA sequencing methods. The technology is utilized in cancer research, diagnostics, and drug development.

Market Implications:

This substantial judgment significantly impacts Guardant's financial position and ongoing operations, as the affected products constitute the vast majority of company revenue. The ongoing 6% royalty obligation through 2033 will continue pressuring margins on core product lines.