- Johnson & Johnson's (NYSE:JNJ) Janssen has won an arbitration against Genmab A/S (NASDAQ:GMAB) on two matters related to their licensing pact for multiple myeloma drug Darzalex (daratumumab).
- The first issue around daratumumab arose because Janssen announced a deal with Halozyme Therapeutics Inc (NASDAQ: HALO) to develop a subcutaneous formulation of daratumumab.
- According to Janssen, Genmab must share in its royalty payments to Halozyme — representing a mid-single-digit percentage rate of sales — so Janssen could cut out its royalty payments to Genmab.
- The three-person arbitration tribunal ruled that Janssen can continue to do that as an offset for its payment to Halozyme.
- On the second issue, which concerns whether Janssen's obligation to pay royalties to Genmab extends until Genmab-owned patents expire or until Janssen-owned patents expire, the tribunal determined that the line should be drawn at "the expiration or invalidation of the last-to-expire relevant Genmab-owned patent."
- According to Genmab, the relevant US, European and Japanese patents will expire in the late 2020s and early 2030s.
- Genmab can seek a review of the award that should conclude with issuing a final award before the end of 2022. Genmab is currently considering its options.
- Price Action: GMAB shares are down 3.06% at $37.39 during the market session on the last check Friday.
