Elan sells 18% stake in US drug firm for $381 million
Irish biotech group Elan has (March 13, 2012) raised approximately $381 million in net proceeds from the sale of 76% (24.15 million ordinary shares) of its shareholding in Alkermes plc , net of underwriter fees. These proceeds further strengthen Elan’s cash balances and capital structure. In September 2011, when Elan combined its Elan Drug Technology (EDT) business with Alkermes Inc, Elan received $500 million in cash and 31.9 million ordinary shares in the newly created Alkermes plc. Following today's transaction, Elan continues to own 7.75 million Alkermes plc ordinary shares, which are subject to legal and contractual transfer restrictions.
Alkermes plc announced the underwritten public offering of 24,150,000 ordinary shares held by a subsidiary of Elan Corporation, plc (“Elan”) at a price to the public of $16.50 per share, which includes 3,150,000 ordinary shares in connection with the full exercise by the underwriters of their option to purchase additional shares
Alkermes plc has a diversified portfolio of more than 20 commercial drug products and a substantial clinical pipeline of product candidates that address central nervous system (CNS) disorders such as addiction, schizophrenia and depression. Headquartered inDublin,Ireland, Alkermes plc has an R&D center inWaltham, Massachusettsand manufacturing facilities in Athlone, Ireland; Gainesville, Georgia; and Wilmington, Ohio. For more information, visit www.alkermes.com.