A U.S. jury ordered Guardant Health to pay $83.4 million in a DNA sequencing patent case, Reuters reported. Separately, the company settled a lawsuit with Illumina over gene-sequencing technology, according to Reuters. The identity of the plaintiff in the $83.4 million case and the financial terms of the Illumina settlement were not disclosed.
The dual outcomes arrive as Guardant expands its liquid biopsy franchise, including the Guardant360 CDx tissue-agnostic companion diagnostic and the Shield colorectal cancer screening test. The company reported $625 million in revenue for fiscal 2025, meaning the $83.4 million verdict represents more than 13% of annual sales if upheld on appeal.
The settlement with Illumina removes one litigation overhang but leaves unanswered whether the deal involves ongoing royalty payments, a license, or other financial terms. Illumina supplies sequencing instruments and reagents used across the liquid biopsy sector and has pursued IP enforcement as a revenue strategy. Illumina shares dropped separately on reports of a China sanctions threat, per Reuters.
The molecular diagnostics sector is navigating an IP-intensive environment. Foundation Medicine and GRAIL—whose multicancer early detection test recently missed its primary endpoint in the NHS-Galleri trial, as BaseCall reported—face overlapping patent claims tied to cell-free DNA analysis and NGS library preparation. Abbott's announced $21 billion-to-$23 billion acquisition of Exact Sciences, covered by BaseCall this week, signals consolidation interest despite legal friction.
Guardant will likely pursue post-trial motions or an appeal in the patent case. Investors should monitor whether the verdict triggers an accrual in upcoming quarterly results and whether the Illumina settlement terms surface in SEC filings.