WASHINGTON (dpa-AFX) - Ireland-headquartered Alkermes plc (ALKS), a fully integrated, global biopharmaceutical company on Tuesday announced that on April 19, 2023, it received a second interim award from the arbitral tribunal in its arbitration proceedings in respect of two license agreements with Janssen Pharmaceutica N.V. a subsidiary of Johnson & Johnson.
Accordingly, back royalties related to fiscal year 2022 of approximately $194 million (inclusive of interest) are due to Alkermes from Janssen under the two agreements. The royalties for CABENUVA, in the U.S. are owed until Dec. 31, 2036.
The separate Know-How Royalty term for INVEGA SUSTENNA ends on Aug. 20, 2024 and for INVEGA TRINZA in the second quarter of 2030, but no later than May 2030 when the applicable license agreement expires. The term for INVEGA HAFYERA ends in May 2030 when the applicable license agreement expires. INVEGA SUSTENNA, INVEGA TRINZA, and INVEGA HAFYERA are registered trademarks of Johnson & Johnson or its affiliated companies.
The tribunal also directed the parties to confer and advise within 21 days concerning the rate of interest and proposed further proceedings, including whether any issues remain for resolution by the Tribunal prior to the Tribunal's issuance of a final award. Alkermes also said that it does not intend to comment or provide additional information regarding the arbitration at this time.
In the Interim Award issued by the Tribunal on Dec. 21, 2022, the Tribunal found that, while Janssen may terminate the license agreements, it may not continue to sell products developed during the term of the license agreements without paying royalties pursuant to the terms of the respective agreements.
Shares of Alkermes are currently trading in pre-market at $30, up $0.82 or 2.81 percent from the previous close,
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