Alkermes (ALKS) Grants Teva License to Market Generic Drug
Alkermes Plc ALKS announced entering into negotiations with Teva Pharmaceuticals USA, Inc. TEVA to settle the ongoing patent litigation between the parties in the U.S. District Court regarding Vivitrol (naltrexone for extended-release injectable suspension).
Per the terms of the settlement agreement, Alkermes has granted Teva a license to market a generic version of Vivitrol in the United States from Jan 15, 2027, or earlier under certain customary circumstances.
Both parties refrained from sharing additional details regarding the terms of the agreement. However, ALKS and TEVA are required to submit the agreement to the U.S. Federal Trade Commission and the U.S. Department of Justice for review.
Shares of Alkermes swiftly climbed 7.1% in the last trading session, depicting the investors’ positive mindset about the resolution of the dispute. Year to date, shares of ALKS have gained 11.4% against the industry’s 11.8% fall.
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Alkermes brought the matter regarding the breach of the patent for Vivitrol to court in September 2020. This action was taken after a notice from Teva for its abbreviated new drug application (ANDA) seeking FDA approval of a generic version of Vivitrol in the United States, before the expiration of Alkermes’ U.S. patent for Vivitrol, which is valid through 2029.
ALKS’ Vivitrol first received FDA approval in 2006 for the treatment of alcohol dependence. Consequently, in 2010, the drug’s indication was expanded to also treat and prevent relapse after patients with opioid dependence have undergone detoxification treatment.
Zacks Rank & Stocks to Consider
Alkermes currently has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the pharma/biotech sector are J&J JNJ and Corcept Therapeutics CORT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, the Zacks Consensus Estimate for J&J’s 2023 earnings per share has increased from $10.73 to $10.75. During the same period, the estimate for JNJ’s 2024 earnings per share has increased from $11.28 to $11.30. Year to date, shares of JNJ have lost 7%.
JNJ beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 5.58%.
In the past 30 days, the Zacks Consensus Estimate for Corcept’s 2023 earnings per share has gone up from 62 cents to 78 cents. The estimate for Corcept’s 2024 earnings per share has also improved from 61 cents to 83 cents. Year to date, shares of CORT have climbed 61.6%.
CORT’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 6.99%.
Alkermes plc Price and Consensus
Alkermes plc price-consensus-chart | Alkermes plc Quote
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