Benzinga - by Vandana Singh, Benzinga Editor.
On Monday, NanoString Technologies Inc (NASDAQ:NSTG) voluntarily initiated a Chapter 11 restructuring proceeding in the United States Bankruptcy Court for the District of Delaware.
Coincident with this proceeding, NanoString is exploring strategic alternatives, including the potential sale of the company or product lines.
“The unexpected outcome of the November GeoMx patent litigation trial in Delaware and the unusually large magnitude of the damages awarded by the jury have forced us to take proactive steps to protect our stakeholders, customers, and employees,” said Brad Gray, President and CEO of NanoString.
NanoString is currently the primary target of an extensive litigation campaign conducted by 10x Genomics Inc (NASDAQ:TXG).
Since May 2021, 10x has brought multiple infringement lawsuits against NanoString in the U.S. and the European Union concerning NanoString’s GeoMx Digital Spatial Profiler (DSP) and CosMx Spatial Molecular Imager (SMI) product lines.
The company has faced unfavorable initial rulings that have impacted its business trajectory and financial position.
In November, a jury in the U.S. District Court for the District of Delaware reached a unanimous verdict favoring 10x Genomics in the patent infringement suit 10x filed against NanoString’s GeoMx products.
In awarding over $31 million in damages, the jury found that NanoString’s GeoMx Digital Spatial Profiler and associated instruments, reagents, and services for RNA and protein detection willfully infringe all seven asserted patents owned by Prognosys and exclusively licensed to 10x Genomics.
NanoString has reached an agreement in principle with certain of incumbent lenders to provide with at least $40 million in new capital in the form of debtor-in-possession financing.
Upon approval of the Bankruptcy Court, this financing facility is expected to provide sufficient liquidity to operate the company’s business during the pendency of the cases.
NanoString will continue to serve researchers across its installed base of over 1,500 nCounter, GeoMx DSP, and CosMx SMI platforms.
Price Action: NSTG shares are down 59.43% at $0.1899 during the premarket session on the last check Monday.
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