Alkermes Says FDA Approves Vumerity For Multiple Sclerosis

(RTTNews) - Biogen Inc. (BIIB) and Alkermes plc (ALKS) said that the U.S. Food and Drug Administration approved Vumerity for the treatment of relapsing forms of multiple sclerosis, to include clinically isolated syndrome, relapsing-remitting disease and active secondary progressive disease.

Biogen holds the exclusive, worldwide license to commercialize Vumerity and plans to make it available in the United States in the near future.

As per the terms of the license and collaboration agreement, Biogen will pay Alkermes $150 million in connection with the FDA's approval of Vumerity.

Biogen plans to account for this milestone payment as an asset that will be amortized over the expected useful life of the product.

Alkermes is also entitled to receive a mid-teens percentage royalty on worldwide net commercial sales of Vumerity, subject to minimum annual payments for the first five years following FDA approval and customary reductions as set forth in the agreement.