diff --git a/pkgs/development/python-modules/linearmodels/default.nix b/pkgs/development/python-modules/linearmodels/default.nix
index c8f3b819959d..8210ae5d0a5f 100644
--- a/pkgs/development/python-modules/linearmodels/default.nix
+++ b/pkgs/development/python-modules/linearmodels/default.nix
@@ -27,6 +27,13 @@ buildPythonPackage rec {
     hash = "sha256-oWVBsFSKnv/8AHYP5sxO6+u5+hsOw/uQlOetse5ue88=";
   };
 
+  postPatch = ''
+    substituteInPlace requirements.txt \
+      --replace-fail "setuptools_scm[toml]>=8.0.0,<9.0.0" "setuptools_scm[toml]"
+    substituteInPlace pyproject.toml \
+      --replace-fail "setuptools_scm[toml]>=8,<9" "setuptools_scm[toml]"
+  '';
+
   build-system = [
     setuptools
     setuptools-scm
@@ -49,6 +56,11 @@ buildPythonPackage rec {
 
   pythonImportsCheck = [ "linearmodels" ];
 
+  disabledTestPaths = [
+    # Skip long-running tests
+    "linearmodels/tests/panel/test_panel_ols.py"
+  ];
+
   meta = {
     description = "Models for panel data, system regression, instrumental variables and asset pricing";
     homepage = "https://bashtage.github.io/linearmodels/";