: Alkermes shares surge after settlement with Teva on alcohol dependence treatment
Shares of Alkermes PLC ALKS jumped 10% Wednesday after the Dublin-based biopharma company announced a settlement of patent litigation with Teva Pharmaceuticals USA Inc. TEVA relating to Vivitrol, a treatment for alcohol and opioid dependence. The settlement agreement, which will be submitted for regulatory review, gives Teva a license to market a generic version of Vivitrol in the U.S. starting in early 2027, Alkermes said in a release. The settlement “lifts a key overhang” on the stock, and the 2027 generic entry date improves Alkermes’ odds of hitting certain profitability targets for 2024 and 2025, Mizuho Securities analyst Uy Ear said in a note Wednesday. Alkermes shares have gained 14.5% in the year to date, while the S&P 500 SPX has gained 17.4%. Teva’s American depositary receipts were little changed Wednesday morning and have gained 6.8% in the year to date.
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