Ebb & Flow II

The $1.7 billion in cash that GlaxoSmithKline (LSE:GSK; GSK) paid for specialty pharma company Reliant is not providing a hefty return for some of the latter's long-term investors.

Alkermes (ALKS), which owns 12.9% of Reliant, will get $166 million at deal close, with up to an additional $8 million subject to the conditions of an escrow arrangement. The company paid $100 million for this stake in 2001, putting the return at less than 2X...