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Guardant Health to License IP to Foundation Medicine for $25M, Royalties Under Settlement Agreement

This article has been updated from a previous version to include additional information provided by Guardant Health.

NEW YORK – Guardant Health will nonexclusively license its digital sequencing technology patents to Roche subsidiary Foundation Medicine for $25 million plus royalties on future sales of Foundation's liquid biopsy products, settling patent lawsuits filed by Guardant against Foundation.

In a May 17 filing with the US Securities and Exchange Commission, Guardant said that the license deal is part of a binding term sheet signed on May 13, which states that upon execution of a definitive settlement agreement between the two firms, all pending patent litigation between the parties will be dismissed.

Foundation Medicine will pay Guardant $25 million as well as certain royalties for the remaining term of the patents in exchange for its nonexclusive license.

A hearing over allegations that Guardant CEO Helmy Eltoukhy had improperly deleted emails relevant to Foundation Medicine's defense had been scheduled for May 13. In addition, a hearing to decide on a preliminary injunction to stop the sale of the FoundationOne CDx liquid biopsy product had been scheduled for May 14. The judge ordered at that time that pursuant to the companies' agreement, various associated motions were being withdrawn.