Guardant Health Faces a $245 Million Patent Judgment, But Its Newer Tests Could Offer Protection

Guardant Health (NASDAQ:GH) faces a significant financial penalty after losing a patent infringement case related to its cancer-testing technology. The US court ruled that the company willfully violated two DNA-sequencing patents held by TwinStrand Biosciences and the University of Washington. As a result, Guardant Health will be required to pay over $245.2 million in damages, along with a 6% royalty on sales of 11 affected products and services until March 2033.

However, the company reassures investors that its newer versions of Guardant Reveal and Shield are not included in the ruling, potentially reducing the impact on future sales. Guardant will appeal the decision, maintaining confidence in its intellectual property and research and development. The financial impact extends beyond the immediate award, with additional interest and accrued royalties increasing the total liability.

While the exclusion of the latest product versions offers some protection, the ruling still poses a substantial risk to Guardant Health's investors.