Life science tools provider NanoString Technologies’ (NASDAQ:NSTG) shares are tanking today after a court in Munich granted a permanent injunction against the company to 10x Genomics (NASDAQ:TXG) in patent litigation.
Consequently, NSTG will have to cease selling CosMx Spatial Molecular Imager instruments and CosMx reagents for RNA detection in Germany. Further, TXG is also seeking an injunction against the products in the U.S. and plans to seek additional injunctions where the products are marketed.
Responding to the court’s decision, NSTG noted that it “believes the Munich court came to an erroneous conclusion and NSTG will appeal the decision.”
The company’s President and CEO, Brad Gray commented, “We believe we will be vindicated on appeal in the immediate case and are confident in our arguments before the German Federal Patent Court where we are seeking a ruling to invalidate the patent in the nullity action.”
Next, a hearing on the nullity action is slated for May 2024 and a favorable ruling could allow NSTG to have the injunction lifted.
In the meantime, NSTG shares are down 7% in the pre-market session today while short interest in the stock now stands at about 9.7%.
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