Alkermes Starts Arbitration Related to NanoCrystal Tech Agreements With Janssen

  • Alkermes plc ALKS commenced binding arbitration proceedings regarding two license agreements with Janssen Pharmaceutica N.V., a subsidiary of Johnson & Johnson JNJ
  • Under these agreements, Janssen received access and rights to Alkermes' small particle pharmaceutical compound technology, known as NanoCrystal Technology, enabling several products. 
  • Janssen partially terminated the agreements in the U.S., effective as of February 2022. 
  • Also Read: Alkermes' Nemvaleukin Shows Encouraging Anti-Tumor Activity In Pretreated Kidney Cancer.
  • The purpose of the arbitration is to settle, among other things, whether, notwithstanding its partial termination of the agreements, Janssen has a continuing obligation to pay royalties on the U.S. sales of products developed under the agreements. 
  • Janssen has refused to pay any royalties since the effective date of the partial terminations. Alkermes strongly disagrees with Janssen's position and contends that it continues to owe royalties
  • No resolution has been achieved. Alkermes remains open to a mutually agreeable resolution. 
  • Price Action: ALKS shares are down 0.93% at $28.63 during the market session on the last check Tuesday.
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