Alkermes to hive off oncology business

Ireland-incorporated biotech Alkermes’ (Nasdaq: ALKS) shares closed up 3.5% at $24.06 yesterday, as it pleased investors when it revealed that it is to explore separating its commercial-stage neuroscience business and development-stage oncology business.

The company, together with the board and external financial and legal advisors, plans to explore a separation of the oncology business into an independent, publicly-traded company (Oncology Co) as part of an ongoing review of strategic alternatives for the oncology business. Should the separation go forward, it is expected to be completed in the second half of 2023.

Alkermes believes separation of the oncology business into Oncology Co would: Drive a sharp strategic focus for each business; Establish separate and distinct management teams with relevant therapeutic expertise based on each business' unique strategic priorities and opportunities; Simplify capital allocation decision-making and increase flexibility to pursue growth and investment strategies more directly aligned with each business' respective goals; and Enable the capital markets to better assess each business' value, performance and potential, and attract a long-term shareholder base suited to each business.