NEW YORK (TheStreet) -- Sequenom (SQNM) shares are rising sharply, up 23.6% to $3.77 in trading on Wednesday, after the genetics analysis company settled its patent dispute with rival Illumina  (ILMN) over noninvasive prenatal testing (NIPT) products.

The two companies will pool their owned and in-licensed intellectual property as part of the settlement while Illumina will pay Sequenom $50 million up front with undisclosed payments to continue through to 2020.

Illumina will receive exclusive worldwide rights to utilize the pooled intellectual property as part of the settlement as well as the authority to provide third party laboratories with license to to develop and sell their own NIPT devices.

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SQNM Chart SQNM data by YCharts

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