Fort Myers cancer lab firm wins federal patent lawsuit

Fort Myers-based cancer-focused genetic testing services firm NeoGenomics has won a summary judgement in a patent infringement case with a Texas competitor. 

Austin-based Natera sued NeoGenomics in federal court in North Carolina. Natera claimed in court documents that NeoGenomics had infringed on two of its patented products that provide early detection of cancer relapse. A federal judge had issued an injunction in the case against NeoGenomics in 2023. 

The ruling handed down Friday dismisses Natera’s claims against NeoGenomics “with prejudice and enters declaratory judgment of invalidity of both of Natera’s asserted patents,” according to a statement from the Fort Myers lab company.

The court ruled Natera’s patents are invalid because they are directed at a natural phenomenon and don’t describe an inventive concept, according to the ruling and a Bloomberg News report. 

NeoGenomics officials, in a statement, say the order will allow the firm to “broadly commercialize” its product, dubbed RaDaR ST, formerly RaDaR 1.1, in this space. The company adds that it has launched sales to biopharma customers and submitted the product to the Centers for Medicare & Medicaid Services for reimbursement.

“We are pleased with the Court’s decision to invalidate Natera’s asserted patents,” NeoGenomics CEO Tony Zook says in the statement. “NeoGenomics is committed to providing cancer patients the most comprehensive array of diagnostic testing options to enable the highest quality of personalized care, which includes providing options for their MRD testing. We will continue to vigorously protect and defend our intellectual property to fuel the next wave of innovation and serve our patients.”

Natera, in its own statement, says it’s “evaluating its options, including an appeal and further enforcement with other patents.” The company, which bills itself as “a global leader in cell-free DNA and precision medicine” adds that it “maintains a broad portfolio of more than 500 issued or pending patents worldwide and remains committed to protecting its significant investments in innovation.” The company posted a net loss of $100.9 million, partly from legal costs, according to intellectual patent legal blog IP Verse. 

Shares of NeoGenomics (Nasdaq: NEO) rose 18% following the ruling, in trading four times larger than normal. Shares opened at $8.75 today, up from $7.08 last Wednesday and $6.70 last Tuesday, Aug. 26. (Shares were down slightly this morning.) NeoGenomics, which says it’s a “leading provider of oncology diagnostic solutions that enable precision medicine,” had $660.55 million in revenue in 2024.