Merger costs cause net loss at Alkermes

MERGER costs relating to its takeover of Elan’s former drug delivery unit, EDT, has resulted in biopharmaceutical group, Alkermes posting a net loss of $22.3 million (€16.2m) for the second quarter of its current financial year.

The Nasdaq-quoted group — which focuses on treatments for diseases affecting the central nervous system and which owns more than 20 commercially available drugs — completed the takeover of Athlone-based EDT business in September in a $960m deal, and switched its headquarters from the US to Dublin.

The results, covering the three months to the end of September, only include a two-week contribution from EDT, but merger-related expenses hampered group growth.

That said, adjusted EBITDA of $13.3m was generated and revenues grew by 46%, year-on-year, to $72m. The company said that it expects a “significant increase” in revenues and positive adjusted EBITDA for its current financial year, “underscoring the financially transformative nature of the merger”.

“This quarter marks the beginning of a new phase of growth for Alkermes, as we begin to realise the financially transformative effects of the EDT transaction. We are now fully executing on our strategy to build Alkermes for growth in both the near- and long-term. In the near-term, we will see the growth in revenues from the expansion of our portfolio of commercial products. Over the long-term, we will realise the value of our advancing pipeline of new drug candidates,” commented chief executive Richard Pops.

“We’re committed to our vision of building Alkermes plc as a global leader in the development of innovative products for a broad range of central nervous system diseases for the benefit of patients and healthcare systems around the world.”