June 6 Quick Takes: Alkermes wins arbitration with J&J

Alkermes plc (NASDAQ:ALKS) won an arbitration tribunal with partner Johnson & Johnson (NYSE:JNJ) regarding the use of Alkermes’ NanoCrystal formulation technology across four J&J products, gaining $194 million in back royalties from 2022 and confirming the company will receive future royalties as per their license agreements. The arbitration was triggered by J&J’s notification in November 2021 that it was partially terminating its two deals with Alkermes for the formulation technology and asserting that it no longer used the NanoCrystal technology. 

As a result of the award, Alkermes raised its financial guidance to $425 million to account for the back-dated royalties and anticipated royalties it will receive in 2023. The award also secures future royalties for all four products: once-monthly Invega Sustenna paliperidone through Aug. 20, 2024; every-three-months Invega Trinza paliperidone and every-six-months Invega Hafyera paliperidone through May 2030; and Cabenuva cabotegravir/rilpivirine through year-end 2036...