Alkermes receives second interim award in Janssen arbitration

Alkermes (ALKS) announced that on April 19 it received a second interim award from the arbitral tribunal in its arbitration proceedings in respect of two license agreements with Janssen Pharmaceutica, a subsidiary of Johnson & Johnson (JNJ). Pursuant to the Second Interim Award: Back royalties related to FY22 of approximately $194M, inclusive of interest, are due to Alkermes from Janssen under the two agreements; and a separate Know-How Royalty term applies for each of INVEGA SUSTENNA, INVEGA TRINZA and INVEGA HAFYERA, as follows: The term for INVEGA SUSTENNA ends on Aug. 20, 2024; The term for INVEGA TRINZA ends in the Q2 of 2030; The term for INVEGA HAFYERA ends in May 2030; Royalties for CABENUVA in the U.S. are owed until Dec. 31, 2036. The Tribunal 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.