Drug maker Alkermes Inc. (ALKS) touted a new milestone for its
key diabetes drug and issued new guidance for the revenue it
expects to make after its merger with Ireland's Elan Drug
Technologies.
The deal for the unit of Elan Corp. PLC (ELN, ELN.DB), announced
in May, is expected to close during the third calendar quarter,
subject to shareholder and regulatory approval.
Alkermes Chief Executive Richard Pops called the move "a
significant inflection point in the transformation of Alkermes into
a sustainably profitable biopharmaceutical company with growing
revenues and margins."
On Monday, Alkermes said it expects adjusted revenue for the
combined company to reach between $460 million and $480 million,
driven by sales from five main products. The two companies
generated about $450 million in revenue for the year ended March
31.
Sales of the company's Vivitrol drug rose 14% sequentially to
$9.7 million in the first quarter, while the launch of its Bydureon
diabetes drug in Europe will trigger a $7 million milestone payment
expected in the fiscal second quarter.
Alkermes shares jumped earlier this month after results of
testing requested by the U.S. Food and Drug Administration showed
Bydureon didn't slow patients' heart rate. The drug is a joint
project of Alkermes's with partners Amylin Pharmaceuticals Inc.
(AMLN) and Eli Lilly & Co. (LLY)
Shares of Alkermes were off 1.7% to $18.94 recently. The stock
is up 54% this year.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com