Seattle-based publicly traded biotech company NanoString Technologies announced Monday that it has initiated a Chapter 11 bankruptcy plan and is exploring a potential sale in the latest fallout from its loss in a patent infringement case against 10X Genomics.
NanoString shares were down more than 70% on Monday, trading at 13 cents per share. It’s a stark downfall from 2021, when the stock hit a record high above $80/share.
A jury in November awarded more than $31 million in damages for 10X Genomics, a Pleasanton, Calif. company that accused NanoString of infringing on seven patents related to NanoString’s GeoMx Digital Spatial Profiler that analyzes RNA and protein.
“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,” NanoString CEO Brad Gray said in a statement.
The bankruptcy protection will pause ongoing patent litigation against NanoString and “provide us with the necessary breathing room to continue to serve our customers while we address our litigation and the related financial challenges,” Gray said in a statement.
The company said it reached an agreement with existing lenders for at least $40 million in new capital to continue funding its business.
Last month NanoString said it planned to cut about 50 positions, or 9% of its workforce. The company also it received a notice from Nasdaq about its stock price being below the $1/share minimum requirement for 30 consecutive business days. It has until July 2 to regain compliance.
Founded in 2003, NanoString spun out of Institute for Systems Biology and went public in 2013. It previously announced layoffs in October, cutting about 110 positions.
