Alkermes shares surge after settlement with Teva on alcohol dependence treatment

Shares of Alkermes PLC
ALKS,
+7.80%
jumped 10% Wednesday after the Dublin-based biopharma company announced a settlement of patent litigation with Teva Pharmaceuticals USA Inc.
TEVA,
+0.15%
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,
+0.44%
has gained 17.4%. Teva’s American depositary receipts were little changed Wednesday morning and have gained 6.8% in the year to date.