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Janssen Partially Terminates Nanoparticle License Agreement With Alkermes

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Janssen Partially Terminates Nanoparticle License Agreement With Alkermes
  • Alkermes plc (NASDAQ: ALKS) stock is trading lower after announcing that Janssen, a unit of Johnson & Johnson (NYSE: JNJ), has provided notice of its partial termination of two licenses relating to Alkermes’ NanoCrystal tech. 
  • The move affects know-how royalties related to the sales of Janssen’s paliperidone products for schizophrenia, including Invega Sustenna and Invega Trinza.
  • While Janssen maintains that it has not used nanoparticle technology, but Alkermes “strongly disagrees.”
  • Alkermes CEO Richard Pops says he’ll “explore all options” at the company’s disposal to prevent J&J from infringing on what he says is Alkermes’ contractual rights.
  • “For years, Janssen has highlighted the use of our NanoCrystal technology in its long-acting INVEGA products and has paid us know-how royalties consistent with this fact,” Pops said in a statement. “We are not aware of any changes that have occurred to these products that would have altered their use of our intellectual property.”
  • Since Alkermes had been planning for a wind-down of the Janssen royalty payments in the coming years, CFO Iain Brown says the termination won’t impact the company’s long-term outlook.
  • “As we look ahead to 2022, we will incorporate any necessary changes from these developments when we provide our financial expectations for the year in February,” Brown said in a statement.
  • Price Action: ALKS shares are down 14.70% at $25.01 during the market session on the last check Tuesday.
 

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