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Guardant Health, Inc. 8-K Report, Corporate Update (Nov 15, 2023)

Filed November 15, 2023For Securities:GH

Summary

Guardant Health, Inc. (GH) has filed an 8-K report detailing a significant development in a patent infringement lawsuit. On November 14, 2023, a jury in the U.S. District Court for the District of Delaware found Guardant Health to have willfully infringed upon two patents owned by TwinStrand Biosciences, Inc. and the University of Washington. The jury awarded the plaintiffs $83.4 million in damages, calculated as a 6% royalty on past sales. The company strongly disagrees with the verdict and intends to pursue post-trial motions to overturn it, seek a new trial, or amend the judgment. Guardant Health also plans to appeal any adverse rulings to the U.S. Court of Appeals for the Federal Circuit. While Guardant Health states it does not expect the verdict to materially impact its current business operations, it acknowledges a potential impact on future expenses if royalty payments are mandated on future sales, especially given the jury's finding of willful infringement which could lead to enhanced damages.

Key Highlights

  • 1Guardant Health found to have willfully infringed two patents (U.S. Patent Nos. 10,287,631 and 10,760,127).
  • 2Jury awarded $83.4 million in damages, representing a 6% royalty on past sales.
  • 3Company strongly disagrees with the verdict and plans to vigorously contest it through post-trial motions and appeals.
  • 4Possibility of enhanced damages up to three times the awarded amount due to finding of willful infringement.
  • 5Guardant Health does not expect a material impact on its current business.
  • 6Potential impact on future expenses if royalty payments on future sales are required.
  • 7The legal proceedings involve TwinStrand Biosciences, Inc. and the University of Washington as plaintiffs.

Frequently Asked Questions

A jury found Guardant Health to have willfully infringed on two patents owned by TwinStrand Biosciences, Inc. and the University of Washington. The jury awarded $83.4 million in damages, calculated as a 6% royalty on past sales.

Guardant Health strongly disagrees with the verdict and plans to file post-trial motions to overturn it, seek a new trial, or amend the judgment. The company also intends to appeal any unfavorable decisions to the U.S. Court of Appeals for the Federal Circuit.

Yes, the plaintiffs may seek to enhance the damages award up to three times the current amount due to the jury's finding of willful infringement.

The company states it does not expect a material impact on its current business. However, it acknowledges that future expenses could be impacted if royalty payments are required on future sales, especially if the verdict is upheld on appeal.