Natera, Inc. v. CareDx, Inc.

CourtDistrict Court, D. Delaware
DecidedFebruary 24, 2025
Docket1:20-cv-00038
StatusUnknown

This text of Natera, Inc. v. CareDx, Inc. (Natera, Inc. v. CareDx, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Natera, Inc. v. CareDx, Inc., (D. Del. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE NATERA, INC., Plaintiff, V. Civil Action No. 20-38-CFC-CJB (CONSOLIDATED) CAREDX, INC., Defendant.

Jack B. Blumenfeld, Derek J. Fahnestock, and Anthony D. Raucci, MORRIS, NICHOLS, ARSHT, & TUNNELL LLP, Wilmington, Delaware; Kevin P.B. Johnson, QUINN EMANUEL URQUHART & SULLIVAN, LLP, Redwood Shores, California; Sandra L. Haberny, QUINN EMANUEL URQUHART & SULLIVAN, LLP, Los Angeles, California; Andrew M. Holmes and Jeff Nardinelli, QUINN EMANUEL URQUHART & SULLIVAN, LLP, San Francisco, California; Bianca Fox, QUINN EMANUEL URQUHART & SULLIVAN, LLP, New York, New York Counsel for Plaintiff Brian E. Farnan and Michael J. Farnan, FARNAN LLP, Wilmington, Delaware; Edward R. Reines, Derek C. Walter, Nate Ngerebara, August Melcher, Concord Cheung, and Shawn Chi, WEIL, GOTSHAL & MANGES LLP, Redwood Shores, California; W. Sutton Ansley, WEIL, GOTSHAL & MANGES LLP, Washington, D.C. . Counsel for Defendant

MEMORANDUM OPINION February 24, 2025 Wilmington, Delaware

CHIEF JUDGE I held a five-day jury trial in this patent infringement case brought by Plaintiff Natera, Inc. against Defendant CareDx, Inc. Natera asserted at trial claims of two patents: U.S. Patent No. 11,111,544 (the #544 patent) and U.S. Patent No. 10,655,180 (the #180 patent). In the first phase of trial, the jury found that two CareDx cell-free DNA (cf{DNA) blood tests used to determine whether an

organ transplant is being rejected—AlloSure and AlloSeq—infringed the asserted claims of the #544 patent but did not infringe the asserted claims of the #180

patent. D.I. 460 at 1-2. The jury also found that none of the asserted claims were invalid for obviousness or lack of adequate written description. D.I. 460 at 4—5. And finally, for each asserted claim, the jury found that none of the limitations of that claim both individually and in combination with each other were well- understood, routine, or conventional as of the priority date of the asserted claim. D.I. 460 at 6-11. In the second phase of trial, the jury awarded Natera a damages award of approximately $96 million, consisting of $83.7 million in lost profits for infringing sales of AlloSure, $12.5 million in reasonable royalties for sales of AlloSure, and $92,350 in reasonable royalties for infringing sales of AlloSeq. See D.I. 461 at 1-3.

Pending before me is CareDx, Inc.’s “Motion for Judgment as a Matter of Law Under [Federal Rule of Civil Procedure] 50 or, in the Alternative, New Trial Under [Federal Rule of Civil Procedure] 59.” D.I. 485. CareDx seeks by its motion a judgment of invalidity of the asserted claims of the #544 and #180 patents for lack of adequate written description and a judgment of ineligibility of the #180 patent claims under 35 U.S.C. § 101. D.I. 486 at 2-19. CareDx also asks that I hold as a matter of law that foreign damages were improper in this case and that the jury’s lost profits award was unsupported and excessive. D.I. 486 at 19- 21. In the alternative, CareDx asks for a new trial or remittitur of damages. D.I. 486 at 21-22. I. THE ASSERTED PATENT CLAIMS A. The #544 Patent In Natera’s words, “[t]he claims of the [#]544 [p]atent” are: directed to preparing preparations of amplified DNA derived from a biological sample and measuring DNA in a biological sample using synthetic pieces of DNA, including amplification products, which are produced using synthetic tools such as primers, to provide a novel and innovative solution to problems peculiar to the particular problem of amplifying and measuring small amounts of DNA from one individual or organism in a biological sample of another individual or organism. D.J. 120 § 28. Natera asserted three claims of the #544 patent at trial: claims 21, 26, and 27.

Claim 21 claims: A method for preparing a preparation of amplified DNA derived from a biological sample of a second individual useful for determining genetic data for DNA from a first individual in the biological sample, the method comprising: extracting cell-free DNA from the biological sample; preparing a preparation of amplified DNA by amplifying a plurality of target loci on the cell-free DNA extracted from the biological sample to generate amplified DNA; analyzing the preparation of amplified DNA by sequencing the amplified DNA using sequencing- by-synthesis to obtain genetic data of the plurality of target loci, and determining the most likely genetic data for DNA from the first individual based on allele frequencies in the genetic data at the plurality of target loci. #544 patent at claim 21. Claims 26 and 27 depend from claim 21. Claim 26 claims “[t]he method of claim 21, wherein the amplifying comprises targeted PCR and universal PCR.” #544 patent at claim 26. Claim 27 claims “[t]he method of claim 21, wherein the sequencing-by-synthesis comprises clonal amplification of the amplified DNA and measurement of sequences of the clonally amplified DNA.” #544 patent at claim 27,

B. The #180 Patent According to Natera, the claims of the #180 patent are: directed to measuring DNA in a sample using synthetic pieces of DNA, including amplification products, which are produced using synthetic tools such as primers, to provide a novel and innovative solution to problems peculiar to the particular problem of amplifying and measuring small amounts of DNA from one individual or organism in a biological sample of another individual or organism. D.I. 119 9 26. Natera asserted two claims of the #180 patent at trial: claims 14 and 15. Claim 14 claims: A method for measuring an amount of DNA ina biological sample, the method comprising: (a) performing a targeted PCR amplification for more than 100 SNP loci on one or more chromosomes expected to be disomic in a single reaction mixture using more than 100 PCR primer pairs, wherein the reaction mixture comprises cell- free DNA extracted from a biological sample of a subject comprising DNA of mixed origin, wherein the DNA of mixed origin comprises DNA from the subject and DNA from a genetically distinct individual, wherein neither the subject nor the genetically distinct individual is a fetus, wherein the DNA of mixed origin comprises DNA from a transplant, and wherein the amplified SNP loci comprise SNP loci on at least chromosome 1, 2, or 3;

(b) measuring a quantity of each allele at a plurality of amplified SNP loci that comprise an allele present in the genetically distinct individual but not the subject, wherein the quantity of each allele at a plurality of amplified SNP loci are measured by high-throughput sequencing; (c) measuring an amount of the DNA from the genetically distinct individual in the biological sample using the quantity of each allele at the SNP loci and an expected quantity of each allele at the SNP loci for different DNA fractions, wherein the method is performed without prior knowledge of genotypes of the genetically distinct individual. #180 patent at claim 14. Claim 15 claims: [t]he method of claim 14, further comprising determining a bias of the PCR amplification, and using the bias to statistically correct the determined quantity of each allele at the plurality of SNP loci on the one or more chromosomes expected to be disomic before the quantity of each allele is used to determine the amount of the DNA from the genetically distinct individual. #180 patent at claim 15, Il. LEGAL STANDARDS CareDx brought the pending motion pursuant to Rule 50(b). Under that rule, “the movant may file a renewed motion for judgment as a matter of law and may include an alternative or joint request for a new trial under Rule 59.” Fed. R. Civ.

P. 50(b).

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Natera, Inc. v. CareDx, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/natera-inc-v-caredx-inc-ded-2025.