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NanoString (NASDAQ:NSTG) lost half of its market value on Monday after a legal setback in Delaware over a patent dispute prompted the life sciences company to withdraw its guidance.
On Friday, 10x Genomics (TXG) said that jurors in a Delaware federal court ordered NanoString (NSTG) to pay $31M in damages after finding that the latter’s GeoMx Digital Spatial Profiler products for RNA and protein detection infringed seven of its patents.
Citing an ongoing review of the setback, the company said in a statement on Sunday it will withdraw full-year 2023 and fourth-quarter financial guidance.
However, NanoString (NSTG) disagreed with the ruling and said it would appeal at the U.S. Court of Appeals for the Federal Circuit.
After the events, TD Cowen downgraded the Seattle, Washington-based firm to Market Perform from Outperform, slashing its price target to $1.40 from $6 per share.
Analyst Dan Brennan says that NanoString’s (NSTG) future looks bleak following several patent losses and ahead of pending case decisions.
Given the elevated U.S. product risk and “a more difficult road ahead to get to positive FCF, a large debt balance and increased competitive pressure, we see Market Perform as more appropriate,” Brennan wrote.
