Alkermes and Novo Nordisk also entered into subcontracting arrangements to continue certain development and manufacturing activities currently performed at the facility for a period of time after closing of the transaction
Alkermes is a global biopharmaceutical company that seeks to develop innovative medicines in the field of neuroscience. (Credit: Alkermes)
Alkermes has completed the previously announced sale of its development and manufacturing facility in Athlone, Ireland to Novo Nordisk. In connection with the closing of the transaction, Alkermes will receive a one-time cash payment for the facility and certain related assets of approximately $91 million.
“With the completion of the sale of the development and manufacturing facility in Athlone, Ireland, we delivered on a significant element of our multi-year program to drive operational efficiency and further align our infrastructure and cost framework with the anticipated needs of our business,” said Richard Pops, Chief Executive Officer of Alkermes. “We are grateful to the Athlone team for their unwavering dedication and commitment over the years to manufacturing important medicines for patients around the world.”
Alkermes and Novo Nordisk also entered into subcontracting arrangements to continue certain development and manufacturing activities currently performed at the facility for a period of time after closing of the transaction, which activities may continue through the end of 2025. This transaction is expected to be operating cost-neutral to Alkermes over the subcontracting period, and thereafter, the transaction is expected to yield significant operating cost benefit and contribute to enhanced profitability. Alkermes will continue to retain all royalty revenues associated with products currently manufactured at the facility.
Alkermes will continue to manufacture its proprietary commercial products, VIVITROL, ARISTADA, ARISTADA INITIO and LYBALVI, at its Wilmington, Ohio manufacturing facility.
Source: Company Press Release