Alkermes arbitration award better than expected, says Mizuho

Mizuho analyst Uy Ear keeps a Buy rating on Alkermes (ALKS) with a $37 price target after the company announced a second interim award in its arbitration proceedings against Johnson & Johnson (J&J) on the royalties for the long-acting injectables Invega franchise. The award clarifies the amount of back royalties owed, the duration of the royalty payments, and the products on which royalties are owed, the analyst tells investors in a research note. Overall, the firm believes the award is better than expected, given that it extends the U.S. know-how royalty payments to Alkermes on the Invega franchise into May 2030. The Street was mostly expecting all U.S. Invega royalties to sunset in 2024, Mizuho points out.