MADISON, Wis. - Exact Sciences Corp. (NASDAQ:EXAS), a prominent cancer screening and diagnostic test provider, announced that a motion to dismiss its patent infringement lawsuit against Geneoscopy has been partially denied by a District Court judge.
This development, disclosed on Tuesday, allows Exact Sciences to pursue claims regarding the alleged infringement of its patented technology by Geneoscopy's ColoSense test, as well as counter false advertising.
The legal dispute centers on Exact Sciences' claims that Geneoscopy's product infringes on patents related to its own Cologuard® colorectal cancer screening test. The contested patents involve sample collection methods integral to Cologuard's success.
Exact Sciences initiated the lawsuit in November 2023 to protect its intellectual property and address Geneoscopy's purportedly misleading promotional activities.
Kevin Conroy, chairman and CEO of Exact Sciences, expressed approval of the court's decision, emphasizing the company's commitment to defending its patent portfolio.
A second complaint was filed by Exact Sciences on May 15, 2024, asserting a newly issued patent, and is expected to follow a similar timeline as the current case due to the overlapping legal issues.
Cologuard is a non-invasive screening option for adults aged 45 and older who are at average risk for colorectal cancer. It detects specific DNA markers and blood in stool samples.
Cologuard's efficacy is supported by results from a large-scale clinical trial and is recognized in colorectal cancer screening guidelines by several major health organizations. Exact Sciences advises that Cologuard is not a substitute for colonoscopy in high-risk individuals.
The company, known for its Cologuard® and Oncotype® tests, continues to invest in research and development to expand its cancer diagnostic solutions. The information about the ongoing litigation is based on a press release statement from Exact Sciences.
InvestingPro Insights
As Exact Sciences Corp. (NASDAQ:EXAS) navigates through its patent infringement lawsuit, the company's financial health and market performance remain a focal point for investors. According to InvestingPro data, the company's market capitalization stands at $9.41 billion, reflecting its substantial presence in the cancer screening market despite recent challenges. Notably, the company's revenue has grown by 15.21% over the last twelve months as of Q1 2024, indicating a positive trajectory in sales.
However, the stock has experienced significant pressure, trading near its 52-week low and showing a 1-month price total return of -16.34%. This could be attributed to several factors, including the legal uncertainties and market conditions. An InvestingPro Tip also indicates that the stock is currently in oversold territory according to the RSI, suggesting that it may be undervalued by the market. Additionally, with six analysts revising their earnings downwards for the upcoming period, investor sentiment appears cautious.
Despite these headwinds, Exact Sciences has demonstrated a high return over the last decade, a testament to its long-term growth potential. It's also worth noting that the company does not pay a dividend, which could be a consideration for income-focused investors. For those interested in a deeper analysis, InvestingPro offers additional insights and metrics; there are currently 7 more InvestingPro Tips available for Exact Sciences, which can be accessed by visiting: https://www.investing.com/pro/EXAS. To enhance your investing strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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