Genmab locked in J&J royalty payments dispute

Danish biotech Genmab has commenced binding arbitration of two matters with Janssen Biotech, a Johnson & Johnson company, over royalty payments for a cancer drug.

Genmab—which announced the news on Tuesday, September 24—said that, under the licence agreement with Janssen, Genmab is entitled to royalties on sales of daratumumab.

Marketed as Darzalex for intravenous administration and as Darzalex Faspro for subcutaneous administration in the US, the drug is used in the treatment of myeloma.

A New York arbitration court will determine whether Genmab is entitled to some of Janssen’s royalty payments to Halozyme Therapeutics, which supplies the enzyme technology used in the subcutaneous formulation of daratumumab.

According to Genmab, 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 the second quarter of 2020”.

The arbitration will also determine whether Janssen’s obligation to pay royalties extends until the expiration of invalidation of the last-to-expire relevant Genmab-owned patent or the last-to-expire relevant Janssen-owned patent covering the product.

Genmab’s US, European and Japanese patents will expire in the late 2020s and early 2030s, while the Janssen-owned issued patents and patent applications (if granted) covering the subcutaneous formulation of daratumumab would expire in the mid-2030s.

“While Genmab intends to vigorously protect its rights under the agreement, the outcome of any arbitration proceeding, as well as its duration, is inherently uncertain,” said the biotech company.

Genmab’s collaborations with Janssen on daratumumab and antibody product HexaBody-CD38 will continue while the arbitration is pending.

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