BILLERICA, Mass. - Bruker (NASDAQ:BRKR) Corporation (NASDAQ:BRKR), a scientific instruments manufacturer with annual revenue of $3.24 billion and a market capitalization of $8.8 billion, faces a legal setback as the U.S. District Court for the District of Delaware upheld a jury's decision, awarding damages to 10x Genomics (NASDAQ:TXG) in a patent infringement case. The court confirmed the damages of approximately $31.6 million, plus interest and a sales true-up post-verdict, against Bruker's NanoString business unit for its GeoMx Digital Spatial Profiler products. However, the court denied 10x Genomics' request for enhanced damages and attorneys' fees.
The court also indicated that it would grant an injunction against the sale of GeoMx products in the United States, with an exception for consumables sold to existing GeoMx customers as of the November 2023 verdict date, allowing them to complete ongoing research. The specifics of the injunction and carve-outs will be detailed in the upcoming weeks. This ruling does not affect Bruker's CosMx or nCounter product lines, which were also acquired from NanoString in May 2024.
In response to the court's decision, Todd Garland, President of Bruker Spatial Biology, expressed disagreement and the intention to seek a stay of the injunction. Bruker plans to appeal the case to the U.S. Court of Appeals for the Federal Circuit, specializing in patent disputes. Garland maintains that the patents in question are invalid and that the GeoMx system utilizes a fundamentally different method than what was claimed by 10x Genomics.
Despite the legal challenges, GeoMx instrument revenue constitutes less than 0.2% of Bruker's total revenue. According to InvestingPro data, the company maintains a healthy financial position with a "Good" overall Financial Health score and strong gross profit margins of nearly 50%. The company remains committed to providing the scientific community with spatial biology platforms to support research advancement.
This news is based on a press release statement from Bruker Corporation. The company has been grappling with the legal dispute since the November 2023 verdict and is now preparing for the subsequent legal processes. While the stock has declined 21.7% year-to-date, InvestingPro analysis suggests the company is currently fairly valued, with multiple additional ProTips available for subscribers. The outcome of Bruker's appeal and the final terms of the injunction will be closely watched by the industry and investors alike. For a comprehensive understanding of Bruker's financial position and future prospects, access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Bruker Corporation has witnessed some significant developments. The company reported a year-over-year revenue increase of 16.4% in the third quarter of 2024, reaching $864.4 million, attributed to both organic growth and contributions from recent acquisitions. However, the company adjusted its full-year 2024 guidance downwards due to slower recoveries in the biopharma sector and Chinese market demand.
Guggenheim initiated coverage on Bruker Corporation, assigning a Buy rating and setting a price target of $72.00, while Goldman Sachs (NYSE:GS) upgraded Bruker's stock from Sell to Neutral, maintaining a price target of $60.00. UBS assumed coverage on shares of Bruker with a Neutral rating and a price target of $66.00.
Bruker also launched the Dimension Nexus atomic force microscope (AFM), a versatile and high-performance addition to its Dimension AFM product line. The Dimension Nexus is expected to benefit a wide range of research applications due to its compact, upgradable design and large-sample analysis capacity. These are some of the recent developments for Bruker Corporation.
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