HALO - Genmab drops 12% on legal dispute with J&J over cancer drug

Genmab (GMAB) down 12% premarket in reaction to the announcement that it was locked in a legal battle with its partner Johnson & Johnson (JNJ) over royalty payments for its key cancer drug, source Reuters.Yesterday, GMAB commenced binding arbitration of two matters under license agreement with JNJ unit, Janssen. The New York arbitration court will handle the dispute.The Company currently receives royalties from Janssen for sales of its drug Darzalex (daratumumab) for treatment of multiple myeloma.The arbitration first is to settle whether Genmab is required to share in Janssen’s royalty payments to Halozyme Therapeutics' (HALO) which supplies the enzyme technology for daratumumab injections. Janssen currently pays a mid-single digit percentage royalties to HALO.Janssen has started reducing its royalty payments to Genmab by what it claims to be Genmab’s share of Janssen’s royalty payments to Halozyme for Q2 2020.The arbitration will also decide the duration of Darzalex royalty payments to Genmab, whether they

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Genmab drops 12% on legal dispute with J&J over cancer drug