Alkermes completes Elan DT buy; signs manufacturing deal

19 September 2011

US drugmaker Alkermes (Nasdaq: ALKS) says it has now completed its previously-announced acquisition of Elan Drug Technologies (EDT), under an agreement with Ireland-based Elan Corp (NYSE: ELN). The latter receives $500 million in cash and 31.9 million ordinary shares of Alkermes, representing around 25% of the new Alkermes plc (The Pharma Letter May 9).Based on the closing share price of Alkermes Inc on September 15 of $16.52, this represents a total transaction value of about $1.0 billion.

Alkermes at the same time established its corporate operations in Ireland, with new headquarters located in Dublin. The company, including its headquarters and operations in Athlone, County Westmeath, has more than 450 employees based in Ireland and more than 1,200 employees worldwide. Alkermes' current headquarters in Waltham, Massachusetts, will be home to the newly-formed company’s R&D operations.

Manufacturing accord expected to produce $15-$20 million revenues by 2016

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