NeoGenomics just pulled the Uno reverse card on Natera's entire business “moat”... 

Cancer diagnostics is supposed to be about saving lives, but here recently it has looked more like a bloody cage fight. And last week's feud between NeoGenomics and Natera was no exception. In short, NeoGenomics walked out of federal court in North Carolina with a summary judgment that left rival Natera flat on the canvas. The judge ruled that Natera’s patents were basically worthless….invalid for claiming ineligible subject matter”... and tossed the case with prejudice.

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Naturally, shares of NeoGenomics popped ~20% on the news Friday morning. This was a BFD to investors, of course, but it’s more than just a legal pissing match… it clears the runway for NeoGenomics’ RaDaR ST assay, its molecular residual disease (MRD) test designed to detect recurring cancer in patients. The ruling means the company can make, sell, and market the test across the U.S. without Natera’s lawyers hanging over their heads.

(Source: Yahoo Finance) 

Why is this yuge, you ask? Good question. NeoGenomics has been pitching RaDaR ST to biopharma customers and has already filed for CMS MolDX coverage to secure reimbursement. In an industry where insurance sign-off makes or breaks adoption, that’s a big deal. CEO Tony Zook was quick to frame the ruling as not just a business win, but a moral one: “We will continue to vigorously protect and defend our intellectual property to fuel the next wave of innovation and serve our patients.”

However, the test itself isn’t some random lab experiment. Instead, it’s a a precision tool built to track minimal residual disease in cancer patients. That’s a lucrative and growing market, especially as oncologists shift toward personalized medicine. The FDA had previously knocked back NeoGenomics’ older RaDaR v1.0 product after Natera leveraged a separate patent (the ’035 patent) to get it pulled off the market. This time, though, the turntables turned. 

(Source: Giphy) 

As for Natera, the company has said it’s “evaluating its options,” which almost certainly means appeal. But Friday’s ruling specifically dismissed claims tied to two of its asserted patents.For context, here’s why the distinction matters: he ’035 patent… a.k.a, the one that previously forced RaDaR v1.0 off shelves… wasn’t part of this decision, so it still stands. In other words, NeoGenomics won’t be free of courtroom drama just yet, but the latest decision opens the door for RaDaR ST to compete in the U.S. cancer testing market unencumbered.

With that said, Natera, for its part, is still a heavyweight in cell-free DNA testing and precision medicine. But this case chips away at its moat… and raises uncomfortable questions about whether it’s leaning too hard on patent litigation instead of innovation to protect its turf. And yet, investors didn’t miss the implications. NeoGenomics experienced it’s largest explosive rally in months, while Natera slipped as investors digested the blow. 

(Source: Giphy) 

Now obviously, patent fights in biotech aren’t new, but the stakes here are bigger than lawyer fees. MRD assays could define the next decade of oncology care. And after Friday, NeoGenomics has more than just a legal victory… it has momentum, and it has every YOLO induced bag holder looking to make a move come tomorrow’s opening bell. Until next time, friends…

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.