Monday, December 24, 2012
While M&A transactions often prove to be disappointing
value creation events, Alkermes
plc has doubled its revenues and added $800 million in market cap on
the back of its deal to acquire the Elan Drug Technologies business of Elan
Corp. plc. Now the biotech has the scale to focus on advancing internal
programs and launching its next drug by 2015.
Alkermes acquired the EDT
division of Elan in May 2011 for $960 million in cash and stock. At the time,
Alkermes said the deal would diversify its portfolio of marketed products, give
it a steady and growing revenue stream, provide the financial resources to
advance its internal pipeline and add multiple billions to its market cap over
three to five years (see BioCentury, May 16, 2011).