- Alkermes will sell its Athlone facility to Novo Nordisk for $92.5 million.
- The transaction is expected to close in mid-2024.
- A subcontracting period will continue until the end of 2025.
- Alkermes will retain royalty revenues from products currently manufactured at the facility.
Transaction Overview
Alkermes plc has entered into a definitive agreement to sell its development and manufacturing facility in Athlone, Ireland, to Novo Nordisk for $92.5 million. The transaction is expected to close in mid-2024, subject to customary closing conditions and adjustments.
Operational Impact
Alkermes aims to enhance operational efficiencies and profitability by aligning its infrastructure with its business needs as it transitions to a pure-play neuroscience company. The sale includes a subcontracting arrangement allowing Alkermes to continue certain operations at the facility until the end of 2025.
Employee Transition
Approximately 400 employees currently working at the Athlone facility will transition to Novo Nordisk. These employees bring valuable expertise in oral drug development and manufacturing, which will support Novo Nordisk's expansion of its global manufacturing capabilities.
Future Manufacturing Plans
Alkermes will continue to manufacture its proprietary commercial products, including VIVITROL®, ARISTADA®, ARISTADA INITIO®, and LYBALVI®, at its Wilmington, Ohio facility. The company will retain all royalty revenues associated with products currently manufactured at the Athlone facility.
