District Court Invalidates 10x Genomics Patent in Favor of Parse Biosciences

The Event in Detail

A pivotal legal development unfolded in the biotechnology sector as the District Court for the District of Delaware granted a motion for summary judgment of invalidity against patent 11,634,752. This patent was originally held by Scale Biosciences, a company subsequently acquired by 10x Genomics (NASDAQ: TXG). The motion was initiated by Parse Biosciences, a leading provider of accessible and scalable single-cell sequencing solutions.

The court's ruling determined that the claims of the '752 patent were invalid due to a "lack of written description and lack of enablement." These are fundamental requirements under patent law, necessitating that a patent adequately describe the invention and enable a person skilled in the art to make and use the invention without undue experimentation. Parse Biosciences CEO, Alex Rosenberg, stated this decision "rewards innovation and promotes accessibility to cutting edge new tools," highlighting its significance for the research community.

Analysis of Market Reaction

This patent invalidation represents a notable challenge to 10x Genomics' intellectual property portfolio, particularly within the highly competitive single-cell sequencing market. While 10x Genomics has been active in asserting its patent rights, this ruling could diminish the breadth of its protection. For Parse Biosciences, this legal victory reinforces its commitment to innovation and fair competition, potentially strengthening its market position against a major competitor.

The biotechnology sector often sees intense competition driven by technological innovation and intellectual property. Decisions like this can shift competitive dynamics, affecting investor perception of a company's long-term growth prospects and ability to defend its market share through proprietary technology.

Broader Context and Implications

10x Genomics (TXG), with a market capitalization of approximately $1.1 billion, has navigated a complex intellectual property landscape recently. The company recently announced a settlement with Bruker Corporation, concluding global patent litigations and resulting in $68 million in installments and ongoing royalties for 10x Genomics. This settlement contributed to a 16% return for TXG shares over the past week, according to InvestingPro data, underscoring the market's positive reaction to the resolution of some patent disputes.

However, the legal interactions between 10x Genomics and Parse Biosciences are multifaceted. Although 10x Genomics previously secured a worldwide permanent injunction against Parse Biosciences for certain infringing products, litigation concerning Parse's gene expression products remains ongoing. The current invalidation of the '752 patent adds another layer to this ongoing legal dynamic, demonstrating that patent protection is not absolute and can be challenged successfully on technical grounds.

Financially, 10x Genomics reported $154.9 million in revenue for the first quarter of 2025, which included $16.8 million from a patent litigation settlement. Excluding this settlement, revenue decreased by 2% year-over-year. The company maintains a robust 68% gross margin and strong cash reserves, ending the quarter with $426.9 million in cash and equivalents. Despite these figures, 10x Genomics withdrew its full-year revenue guidance for 2025 due to concerns about the macroeconomic environment and U.S. academic and government research funding.

Expert Commentary

Alex Rosenberg, CEO of Parse Biosciences, emphasized the broader positive impact of the decision, stating:

"Parse offers a fundamentally differentiated solution that makes single cell sequencing more scalable without the need for expensive microfluidics. The recent decisions reward innovation and promote accessibility to cutting edge new tools. This is a win for the research community."

This sentiment underscores the view that robust patent examination, including challenges based on written description and enablement, is crucial for fostering genuine innovation rather than merely protecting broad claims that may not be fully supported by the original disclosure.

Looking Ahead

The complex legal and competitive landscape between Parse Biosciences and 10x Genomics will continue to evolve. Investors will be closely watching the ongoing litigation concerning Parse Biosciences' gene expression products and how 10x Genomics strategically adapts its intellectual property defense and innovation pipeline.

The invalidation serves as a reminder of the critical importance of precisely defined and thoroughly enabled patent claims in the fast-paced biotechnology industry. The ability of companies to secure and defend valid intellectual property will remain a key determinant of their competitive advantage and long-term financial performance in the burgeoning single-cell and spatial biology markets.