- Alkermes plc (NASDAQ:ALKS) commenced binding arbitration proceedings regarding two license agreements with Janssen Pharmaceutica N.V., a subsidiary of Johnson & Johnson (NYSE: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.
