NanoString Technologies (NASDAQ: NSTG) shares plunged over 10% on Tuesday following the announcement of a voluntary Chapter 11 bankruptcy filing.
The move to file for bankruptcy comes after NanoString lost several legal battles against 10x Genomics, leading to hefty damages awarded against the company in a patent lawsuit. NanoString attributes the bankruptcy filing directly to these losses in court.
NanoString Technologies has stated that it is formulating plans to safeguard its long-term prosperity. These plans involve the exploration of strategic alternatives, which could include the sale of the company or some of its product lines.
Brad Gray, the President and CEO of NanoString has commented on the company’s recent bankruptcy announcement. He stated that NanoString possesses robust product platforms and maintains strong ties with its customers in the scientific community. Gray also highlighted the company’s skilled workforce and their unwavering belief in the integrity of their innovation process.
He further added,
“We believe chapter 11 protection will provide us with the necessary breathing room to continue to serve our customers while we address our litigation and the related financial challenges.”
NanoString (NASDAQ: NSTG) Stock Performance
NSTG stock plummeted 10.88% to close at $0.09 on Tuesday. The traders had exchanged hands with 57,647,237 (57.64 million) shares compared to the average daily trading volume of 2.31 million.