NEW YORK – Shares of Sequenom surged Wednesday after the genetic analysis company said it resolved a patent dispute over prenatal testing products with competitor Illumina.
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Illumina agreed to pay Sequenom $50 million upfront and will make payments to Sequenom through 2020. The companies did not disclose the size of those payments.
Both Sequenom and Illumina's Verinata Health unit make prenatal tests that detect Down syndrome and other conditions that involve missing or extra copies of chromosomes. Under the settlement, they will pool their patents and other intellectual property related to noninvasive prenatal testing. Both companies can use the patents to develop and sell laboratory prenatal diagnostic tests. Illumina will also be able to use that intellectual property to develop and sell diagnostic testing kits and it can license tests to other companies.
Illumina will also supply instruments and chemicals to Sequenom for five years.
Shares of Sequenom Inc. jumped 87 cents, or 29 percent, to $3.92 in morning trading. Illumina Inc. stock gained 34 cents to $188.51.