GMAB - Genmab to file appeal against tribunal award in Darzalex royalty dispute with J&J

2023-04-24 05:37:42 ET

Genmab ( GMAB ) said it is filing a review of an award dismissing its claims in the second arbitration linked to a license agreement with Johnson & Johnson's ( NYSE: JNJ ) unit Janssen Biotech over cancer drug daratumumab, sold as Darzalex.

The Denmark-based company said that the review of the award will be conducted by a single appeal arbitrator under the rules of the CPR Institute for Dispute Resolution for Non-Administered Arbitration.

Last week, Genmab disclosed that the arbitral tribunal had dismissed its claims, which included a claim for milestone payments linked to the subcutaneous formulation of daratumumab (SC daratumumab, marketed as Darzalex Faspro in the U.S.); and a claim for a new 13-year royalty term, on a country-by-country basis, from the date of the first commercial sale of SC daratumumab in each such country.

In April 2022, the arbitral tribunal had ruled in favor of Janssen. The tribunal ruled that Janssen's obligation to pay royalties to Genmab extended through the expiration or invalidation of the last-to-expire relevant Genmab-owned patent covering the product or use but not the Janssen-owned patent.

The tribunal also ruled that Janssen is allowed to continue reducing its royalty payments to Genmab as an offset against a share of Janssen's royalty made to Halozyme Therapeutics ( HALO ).

Halozyme's enzyme technology is used in Darzalex Faspro in the U.S. and Janssen pays royalty for this.

The issue was that Janssen had reduced its royalty payments to Genmab by what it claimed to be Genmab's share in the royalty to Halozyme, which began in Q2 2020 and continues.

GMAB +0.27% to $41.10 premarket April 24

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