10x Genomics' Court Victory: Bruker's GeoMx Products Face US Ban

In a significant development in the ongoing patent infringement dispute, 10x Genomics has secured a permanent injunction against Bruker Corporation's sale of GeoMx products in the United States. The U.S. District Court for the District of Delaware ruled in favor of 10x Genomics, prohibiting Bruker from manufacturing, using, selling, or offering to sell its GeoMx Digital Spatial Profiler and associated instruments, reagents, and services for RNA and protein detection. The injunction, set to be entered in January 2025, aims to protect 10x Genomics' intellectual property while minimizing disruption to ongoing research by existing GeoMx users.

The court's decision follows a November 2023 jury verdict that found NanoString Technologies' GeoMx products willfully infringed upon seven patents exclusively licensed to 10x Genomics by Prognosys Biosciences. The jury awarded 10x Genomics over $31 million in damages and affirmed the validity of the patents. The court also recognized the harm caused to 10x Genomics by NanoString's infringing conduct, stating that the company "suffers when it proclaims itself as an innovator in spatial genomics but a competitor is using the same innovative, patented technology."

The injunction against Bruker's GeoMx products is expected to have a significant impact on the company's revenue and earnings growth in the next fiscal year. Bruker acquired the GeoMx product line from NanoString Technologies for approximately $392.6 million in cash, and the injunction could lead to a substantial reduction in revenue from this segment. However, the court allowed existing GeoMx users to continue purchasing reagents, subject to a royalty rate, which may mitigate some of the revenue loss.

To mitigate the impact of the injunction on its spatial biology business, Bruker may explore strategic adjustments such as developing alternative technologies or partnerships to create new products that do not infringe upon 10x Genomics' patents. Additionally, Bruker could prioritize its other spatial biology offerings, such as the Hyperion Imaging System, to diversify its product portfolio and reduce reliance on GeoMx products.



The injunction is likely to negatively impact Bruker's stock price and market valuation in the short term. Investors may react negatively to the developments, potentially leading to a decrease in Bruker's stock price and market valuation. However, the long-term impact on Bruker's financials will depend on the company's ability to adapt and innovate in the face of this setback.

In conclusion, the court's decision to grant a permanent injunction against Bruker's GeoMx products is a significant victory for 10x Genomics. While the injunction may have short-term implications for Bruker's financials, the company can mitigate the impact by exploring strategic adjustments and focusing on its other spatial biology offerings. As the spatial biology market continues to evolve, both companies will need to adapt and innovate to maintain their competitive edge.