Alkermes and Elan Merger Completed
The merger of Alkermes and Elan Corp’s drug technology unit has now been completed, following the approval of the merger by Alkermes shareholders on the 8th September 2011. The new entity, which will be known as Alkermes plc, will be headquartered in Dublin. With operations based in Athlone, they have approximately 450 employees based in Ireland and more than 1,200 employees worldwide.
The company has incorporated Elan Drug Technologies, “the profitable, world-class drug formulation and manufacturing business unit” of Elan. Elan will pocket $500 million and 31.9 million ordinary shares of Alkermes plc, representing approximately a 25% stake in the new Alkermes; this valuing the total transaction at around $1 billion.
The chief executive, Richard Pops, stated that the creation of Alkermes will result in “a unique, global, diversified company and a leader in CNS medications”. “Through this transaction, we have strategically combined two highly innovative companies with proprietary technologies and important commercial products”.
Alkermes has also announced “a multiyear, multimillion dollar manufacturing agreement with one of the world’s top ten pharmaceutical companies”. Under the terms of the agreement, Alkermes will manufacture the company’s finished pharmaceutical product. The agreement is expected to generate $15-$20 million in annual manufacturing revenue by 2016.
John Perry, the Irish minister of state for small business said Alkermes’ decision to establish its headquarters in Ireland “is further demonstration of this country’s continued ability to attract companies”. The announcement of the new contract for the Athlone facility “is an indication of its track record for successful innovation and high-quality manufacturing”.
Richard Pops added that the company views Ireland “as a gateway to the European Union and global pharmaceutical market”.