Alkermes to Merge With Elan Drug Technologies

Alkermes, Inc. has entered a definitive agreement to merge with Elan Drug Technologies (EDT), the drug formulation and manufacturing business unit of Elan, for approximately $960 million in cash. The combined companies will be named Alkermes plc.

Alkermes plc will have revenue from 25 commercialized products, with future growth expected from products Risperdal Consta, Invega Sustenna, Ampyra, Vivitrol and Bydureon. The combined company is expected to have product, royalty and manufacturing revenues of more than $450 million annually and resources to invest in its pipeline.

“The merger will be financially transformative and create a profitable, global biopharmaceutical company with a diversified CNS product portfolio and a strong foundation for growth,” said Richard Pops, chief executive officer of Alkermes. “Both companies have a proven track record as innovators. This merger will bring the scale and resources for strategic and balanced investment across the whole product continuum, from R&D innovation to clinical development, to world-class manufacturing and commercial expansion. We’re looking forward to working with the EDT team to accelerate growth and to create value for our shareholders and the patients we serve.”

Kelly Martin, chief executive officer of Elan plc said, “Upon closing, this transaction aggressively advances a number of long-standing strategic and financial objectives for Elan. Namely, it enables us to reduce the debt on our balance sheet and further improve our capital structure, increases operating leverage, allows for additional focus and continued disciplined investment in a broad array of opportunities within the neurology space from a scientific, clinical and product point of view and lastly, provides Elan shareholders with the opportunity to realize further value – over time – from the equity position in Alkermes plc.”