Neogenomics Inc (NEO)

Neogenomics Inc. (NEO) stock dropped by 18.10% due to a preliminary injunction from a North Carolina district court, which prevents the sale of its RaDaR technology. The injunction has raised concerns about the company's growth prospects and negatively affected investor sentiment. Here are the key factors contributing to the stock's decline:

• Preliminary Injunction: Neogenomics received a preliminary injunction from a North Carolina district court, which prohibits the company from selling its RaDaR technology. The lawsuit was filed by Natera Inc (NTRA), alleging that Neogenomics' RaDaR infringed on Natera's patent.
• Appeal Plans: Neogenomics stated its intention to appeal the ruling, indicating that the company is actively contesting the injunction.
• Scope of Injunction: The injunction restricts Neogenomics from making, using, selling, or offering for sale the accused RaDaR assay in the U.S. It also prohibits Neogenomics from promoting, advertising, marketing, servicing, distributing, or supplying RaDaR to induce infringement by others. However, Neogenomics is allowed to continue offering RaDaR for existing patients and certain clinical trials and projects.
• Impact on Growth Prospects: The development disrupted a crucial long-term growth factor for Neogenomics. RaDaR technology had been a significant driver of the company's growth prospects. This legal setback raises doubts about the extent of Neogenomics' long-term potential upside in its business model.
• Market Sentiment: Negative legal developments and uncertainties regarding RaDaR's potential return to the market can significantly impact investor sentiment and lead to a decline in the stock price.