Alkermes plc (NASDAQ: ALKS) recently announced that it began executing arbitration proceedings regarding two license agreements between it and Janssen Pharmaceuticals N.V. The latter, a subsidiary organisation of Johnson and Johnson, legally obtained freedom to use Nanocrystal Alkermes small particle technology to develop products. However, it rescinded the U.S. stipulated contracts sometime in February, thus necessitating the proceedings.
The Nanocrystal is responsible for producing various products, including the Invega and Trinza, among others. After the notice by the latter company detailing its intention to rescind parts of the contracts, Alkermes invoked the dispute resolution mechanisms to reinforce them.
Alkermes states that Jansen didn’t remit royalties for creating products in the U.S
The main aim of the arbitration clause is to ensure that Jansen remits payments to the royalties required when selling and distributing the products it created using the Nanocrystal. Alkermes alleges that its partner declined to remit any form of royalties required from creating certain products in the U.S.
Jansen argues that after the rescission of the agreement, it does not need to remit any forms of royalties for any marketing done on its products. The arbitration procedure is to enforce both parties come to a peaceful conclusion regardless of what it entails. The two companies are open to the procedure. However, no disclosures have been made on each expected outcome.
The dispute resolution mechanism should be done according to the regulations placed by the Institute for Conflict Prevention and Resolution. Moreover, the arbitration procedure shall entail a bench of three arbitrators who mandate that the process remains confidential and that the parties adhere to the rules placed by the relevant laws.
Alkermes operations
Alkermes Inc is among the leading companies in biopharmaceutical organisations across the globe. The company develops products that target several disorders, including alcohol dependence and bipolar disorder, among others.
Alkermes possesses its headquarters located in Dublin, Ireland. However, its manufacturing plants are in Ohio, Wilmington, and others. The company also opened a research site in Athlone. Alkermes did disclose further information on the nature, process and timeline of the arbitration procedure that is yet to be scheduled.
