Why Are NanoString Technologies Shares Falling Today

Wednesday, 10x Genomics Inc TXG won an injunction in its patent litigation against NanoString Technologies Inc NSTG and its German subsidiary regarding CosMx Spatial Molecular Imager instruments.

The move will force NanoString to cease selling its CosMx Spatial Molecular Imager instrument and RNA detection reagents in Germany.

The Munich Regional Court issued the injunction based on its finding that the CosMx products infringe European Patent Number 2794928B1, which relates to in situ detection of analytes. 

In its decision, the Munich Regional Court referenced an earlier preliminary opinion by the German Federal Patent Court, finding the asserted claims of the patent valid.

10x Genomics has initiated legal action against NanoString on more than 12 other patents, several related to the patent asserted in Germany. 

10x Genomics is seeking an injunction and other remedies against NanoString's GeoMx and CosMx products.

NanoString CEO Brad Gray disagreed with the decision, adding that the firm "will continue to pursue all legal avenues to vigorously defend against 10x's claims," including an appeal, which could take more than a year.

The scope and impact of the Munich court's decision are limited solely to Germany.

In addition, the decision does not apply to using the CosMx SMI instrument to detect proteins, which NanoString will continue to offer and support.

NanoString is also challenging the European patents' validity through a nullity action in the German Federal Patent Court, with a decision expected following a hearing scheduled for May 2024.

Price Action: TXG shares are up 4.02% at $54.65, and NSTG shares are down 20.60% at $6.76 on the last check Thursday.