Cancer diagnostics company NeoGenomics Inc (NASDAQ:NEO) announced on Friday that the US District Court for the Middle District of North Carolina has granted its motion for summary judgment in a patent infringement lawsuit against clinical genetic testing company Natera Inc (NASDAQ:NTRA).

The Court ruled that all of Natera's asserted patent claims are invalid for covering ineligible subject matter.

As a result, the Court will dismiss Natera's claims against NeoGenomics with prejudice and enter declaratory judgment of invalidity on both of Natera's asserted patents. The ruling allows NeoGenomics to continue making, using, selling, and promoting its RaDaR ST molecular residual disease (MRD) assay in the United States.

NeoGenomics has launched RaDaR ST to biopharma customers and submitted the test for review under the Centers for Medicare & Medicaid Services' Molecular Diagnostic Services Program for potential reimbursement.

CEO Tony Zook said that the decision affirms the company's ability to provide cancer patients with advanced diagnostic testing and reiterated its commitment to defending its intellectual property to support continued innovation in oncology.