Alkermes to Sell Georgia Mfg FacilityBy
Alkermes has agreed to sell its manufacturing facility in Gainesville, Georgia, the manufacturing and royalty revenue associated with products manufactured at the facility and global rights to meloxicam IV/IM (an anti-inflammatory drug to Recro Pharma, Inc. (Recro), a specialty pharmaceutical company. Under the terms of the agreement, Alkermes will receive from Recro an initial cash payment of $50 million, development and commercialization milestone payments of up to $120 million related to meloxicam IV/IM, and low double-digit royalties on net sales of meloxicam IV/IM.
Assets being sold as part of the transaction include the GMP facility in Gainesville, which was acquired by Alkermes in 2011 as part of its business combination with Elan Drug Technologies; Alkermes' rights to Ritalin LA, Focalin XRÂ®, Verelan, Zohydro ER, and Bidiltm, and the late-stage, parenteral formulation of meloxicam IV/IM, a nonsteroidal anti-inflammatory drug, which has completed multiple phase II trials for the management of moderate-to-severe acute pain, as well as related technology.
This transaction is subject to antitrust law clearance as well as other customary terms and conditions. This transaction is anticipated to close in the second quarter of 2015.
Alkermes said that the move is part of the company’s streamlining of its manufacturing operations for its commercial products and late-stage pipeline into two GMP facilities in Athlone, Ireland, and Wilmington, Ohio.