A federal judge finalized a ruling ordering Guardant Health to pay over $245.2 million to TwinStrand Biosciences and the University of Washington for willful patent infringement. Guardant Health will also be subject to ongoing 6% royalties on contested products until 2033, impacting a significant portion of its revenue.
Guardant Health has been hit with a substantial financial penalty of over $245.2 million for willful infringement of Duplex Sequencing patents, cementing a November 2023 jury verdict. This penalty covers past damages and includes a significant $119.4 million from a court-ordered 6% royalty rate through May 2026, plus ongoing 6% royalties on 11 products and services (representing 90% of revenue) until the patents expire in March 2033. This ruling represents a major financial blow and an ongoing drag on profitability for Guardant Health, impacting its future earnings and cash flow. The stock was down on the news, reflecting the immediate negative sentiment, and the long-term royalty obligation poses a sustained risk to its financial performance.