US court prohibits Huada Zhizao from selling gene sequencing products in the United States

Recently, the US federal court issued a preliminary injunction: prohibiting Huada Gene and its subsidiaries (including Huada Zhizao MGI) from distributing and promoting its gene sequencing platform in the United States. On June 13, William, judge of the Northern District Court of California, United States
Orrick approved the allegation of llamina, and said that the gene sequencers of Huada Gene using standard MPS sequencing and CoolMPS chemical sequencing technology will be banned from promotion and sales.

Gene sequencers involved in this allegation include Huada Zhizao MGISEQ-T7, DNBSEQ-G400 (previous MGISEQ-2000), DNBSEQ-G50, BGISEQ-500 and BGISEQ-50.

At the same time, illuminina also accused Huada Gene sample preparation reagent of infringement of illuminina patent.

Hold HiSeq X, NovaSeq, iSeq? For star sequencing systems such as 100, illuminina occupies an absolute position in the field of gene sequencing. It is the world’s largest provider of gene testing equipment and the largest provider of gene testing consumables.

Lei Feng learned that this is not the first time that Illumina has filed a lawsuit against Huada Zhizao.

In 2019, llamina filed a patent infringement lawsuit against Latvia Huada Zhizao, a subsidiary of Huada group, in the German district court in Dusseldorf, claiming that the sequencing products of Huada Zhizao violated its patents.

Subsequently, another patent infringement lawsuit against BGI Europe A/S, A subsidiary of The Huada group, was filed in the Danish maritime and commercial high court.

Gene sequencer is the upstream of gene sequencing industry and the decisive equipment in gene sequencing industry, which has a high technical threshold. For a long time, the production of sequencer has been monopolized by foreign companies, and the middle reaches of gene testing companies are passive in the industry.

Once the price of the sequencer and the matching reagent is raised, the price of the downstream gene testing service will be fluctuated.

In 2016, Huada Zhizao was established and gradually realized the localization of the core components of the sequencer. Lei Feng learned that in early June 2020, Huada Zhizao completed a large-scale Round B financing of 1 billion US dollars.

According to 36 Krypton’s article, up to now, the compound growth rate of Huada Zhizao’s income has exceeded 200%, the Chinese market has accounted for more than 1/3, its business has spread to 39 countries and regions, and its users have exceeded 530, the global installed capacity has reached 1700 units, of which gene sequencers account for more than 1/3 in the Chinese market.

With the launch of products such as DNBSEQ-T7 sequencer, high-throughput automated sample preparation system MGISP-960 and remote ultrasonic robots, Huada Zhizao has made important breakthroughs in the research and development of high-end life science instruments and equipment and production capacity, during the epidemic, many forces were shared.

In response to the preliminary judgment, on June 17, Huada Zhizao issued a “statement on the results of the preliminary judgment of the US court.”

the following is the full text of the statement:

huada manufacturing respects the preliminary judgment of the US court on the provisional injunction against the company, but we do not agree with this ruling and consider appealing to protect our rights and interests. At the same time, the result of this judgment will not affect the business of Huada Zhizao in the United States (automated extraction equipment and reagents), and will not affect the business of Huada Zhizao outside the United States.

As a leader in the gene sequencing equipment industry, Huada Zhizao is winning the recognition of more and more users around the world through its advanced patented technologies such as DNBSEQ, high-quality products and professional services. Huada Zhizao reiterated that the launch of the temporary ban is a means for the company to maintain its market monopoly position and suppress the development of the industry, which will further curb the legitimate competition in the field of global gene sequencing equipment, finally, users are limited in their free choice in the US market. Huada Zhizao will continue to abide by the laws and regulations on intellectual property rights in the country and region, and advocate a fair competition, open and win-win industry ecology.