Biotech wins $16.5 million in drug royalties dispute

Arbitration panel awarded the sum to Acorda to cover past royalties and interest | Acorda can now source the drug elsewhere.

Ireland-based biotech Alkermes must pay $15 million plus $1.5 million in prejudgment interest to Acorda Therapeutics, an arbitration panel has said.

Acorda announced the decision in a statement released on October 16.

The neurology-focused biotech company filed the arbitration demand with the American Arbitration Association in July 2020 after the expiry of Alkermes’ patent for Ampyra (dalfampridine)

The treatment helps improve walking in adults with multiple sclerosis (MS).

According to the decision of the three-judge panel, Acorda will also no longer have to pay royalties to Alkermes on net sales for the licensing and supply of Ampyra in the US. It is now free to source the drug from alternative suppliers.

Commenting on the decision, Acorda’s president and CEO, Ron Cohen said:

“This award will allow Acorda to obtain more competitive market rates for the supply of Ampyra, significantly reducing our cost of goods and meaningfully increasing the product’s value to the company.”

“This will also help Acorda to continue to provide its customary high level of support for Ampyra, ensuring that as many people with MS as possible may benefit from it.”

Acorda Therapeutics’ stock price soared 53.3% after the decision was revealed.

Alkermes has been approached for comment.

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