Alkermes to buy Elan Drug Technologies for $960 million

09 May 2011

US-based biotech company Alkermes Inc, today said it is acquiring Elan Drug Technologies (EDT), a unit of Elan Corp, in a cash and stock deal valued at $960 million.

Alkermes and EDT will be merged under a new holding company incorporated in Ireland. This newly created company will be named Alkermes plc.

Waltham, Massachusetts-based Alkermes is a fully integrated biotechnology company that develops innovative medicines like Vivitrol for alcohol and opioid dependence and manufactures Risperdal Consta for schizophrenia and bipolar I disorder.

Its pipeline of drugs also includes extended-release injectable and oral products for the treatment of prevalent, chronic diseases, such as central nervous system disorders, addiction and diabetes.

EDT, based in Dublin, Ireland, is a drug formulation and manufacturing business unit of Elan. For over 40 years, EDT has been a drug delivery provider for a broad range of pharmaceutical companies, including many of the world's leading pharmaceutical companies. To date, over 40 products have been developed using EDT's technologies and are used by millions of patients each day.

The acquisition will give Alkermes diverse revenue streams from 25 commercialised products, with future near-term growth expected to be driven by five major products, Risperdal, Consta, Invega, Sustenna, Ampyra, Vivitrol and Bydureon.