Alkermes shareholders vote in favor of merger with Elan Drug Technology

Shareholders of USA-based Alkermes (Nasdaq; ALKS) have voted to approve the previously-announced $960 million merger of Alkermes and Elan Drug Technologies (EDT), the profitable drug formulation and manufacturing business unit of Ireland’s Elan Corp (The Pharma Letter May 9).

Both businesses will be combined under Alkermes plc, a newly-formed company domiciled in Ireland. Approximately 99.9% of the votes cast by Alkermes’ shareholders were in favor of adopting the business combination agreement and plan of merger. Alkermes currently anticipates that the business combination will close on September 16, 2011. Following the merger, Alkermes plc will be listed on the Nasdaq stock exchange under Alkermes’ current ticker symbol ALKS.

The transaction will result in the establishment of a global biopharmaceutical company that will have diverse, growing revenues from more than 20 commercial products. Alkermes plc is expected to be immediately profitable on a cash earnings basis and generate product, royalty and manufacturing revenues in excess of $450 million annually, leaving the company well-positioned to invest in its CNS-focused pipeline of proprietary and partnered product candidates currently in clinical development.