Alkermes plc, a global biopharmaceutical company, has recently announced its decision to sell its development and manufacturing facility in Athlone, Ireland. This strategic move is part of Alkermes' plan to align its infrastructure and cost structure with the projected needs of the business as it transitions to becoming a pure-play neuroscience company in 2024. The facility will be sold to Novo Nordisk, a leading global healthcare company. The transaction is expected to close in mid-2024 and will result in a one-time cash payment of $92.5 million for Alkermes. This sale will drive operational efficiencies and enhance profitability in the long term. Approximately 400 highly skilled colleagues currently employed by Alkermes will join Novo Nordisk as part of this acquisition, bringing valuable capabilities within oral drug development and manufacturing. Alkermes will continue to manufacture its proprietary commercial products at its Wilmington, Ohio manufacturing facility, while Novo Nordisk gains additional development and manufacturing capacity for oral products with the acquisition of the Athlone facility. This strategic move marks an exciting opportunity for growth for the employees at the Athlone facility and reinforces Alkermes' commitment to advancing innovative medicines in the field of neuroscience.
Strategic Decision to Sell the Athlone Facility
Alkermes plc has made a strategic decision to sell its development and manufacturing facility in Athlone, Ireland. This move is part of the company's plan to align its infrastructure and cost structure with its projected needs as it transitions to becoming a pure-play neuroscience company in 2024.
The facility will be sold to Novo Nordisk, a leading global healthcare company. This transaction, expected to close in mid-2024, will result in a one-time cash payment of $92.5 million for Alkermes. The sale of the Athlone facility is aimed at driving operational efficiencies and enhancing long-term profitability.
Impact on Alkermes' Workforce and Expertise
Approximately 400 highly skilled colleagues currently employed by Alkermes will join Novo Nordisk as part of this acquisition. Their expertise in oral drug development and manufacturing will play a key role in serving more patients with oral products.
This acquisition provides an exciting opportunity for growth for the employees at the world-class facility in Athlone. It reinforces Alkermes' commitment to their professional development and highlights the value of their contributions to the field of neuroscience.
Continued Collaboration through Subcontracting Arrangements
As part of the agreement, Alkermes and Novo Nordisk plan to enter into subcontracting arrangements to continue certain work currently performed at the Athlone facility. These arrangements may last until the end of 2025 and are expected to be cost-neutral to Alkermes during the subcontracting period.
Alkermes will also retain all royalty revenues associated with products currently manufactured at the facility. This collaboration allows for a smooth transition and ensures the continued success of ongoing projects.
Focus on Neuroscience and Proprietary Commercial Products
While the Athlone facility is being sold, Alkermes will continue to manufacture its proprietary commercial products at its Wilmington, Ohio manufacturing facility. These products include VIVITROL®, ARISTADA®, ARISTADA INITIO®, and LYBALVI®.
The company remains committed to developing innovative medicines in the field of neuroscience. This strategic move allows Alkermes to streamline its operations and further advance its mission of improving the lives of patients with neurological disorders.