$100 Million Equity Investment Provides Access to Sales and Marketing
Infrastructure Targeting Primary Care Physicians
Alkermes, Inc. (NASDAQ: ALKS) today announced a strategic alliance with Reliant
Pharmaceuticals, LLC, a rapidly growing, privately held pharmaceutical company
marketing branded, patent-protected pharmaceutical products to U.S.-based
primary care and targeted specialty physicians.
The alliance provides Alkermes with a strategic partner for the acquisition, development, marketing and sales of proprietary pharmaceutical products. Pursuant to the agreements announced today, Alkermes has made a $100 million equity investment in Reliant in exchange for approximately 19% ownership of the company. Alkermes' investment was accompanied by a $50 million investment by Pritzker family business interests and Bay City Capital, the major equity owners of Reliant.
In addition to the equity investment, the companies have agreed to explore collaborations in several areas, including the marketing or co-marketing by Reliant of Alkermes' products, the co-development of new product candidates, the potential acquisition of products or product candidates from third parties, and the application of Alkermes' proprietary drug delivery technologies and manufacturing capabilities to Reliant's expanding product portfolio.
"This alliance accelerates our ability to develop, acquire and commercialize proprietary product candidates, particularly those that will be prescribed in the primary care physician's office," said Richard Pops, Chief Executive Officer of Alkermes. "Reliant has built a sophisticated commercialization infrastructure and an experienced Board and management team with an outstanding track record of success in the pharmaceutical industry. We look forward to expanding our relationship as we identify opportunities for collaboration."
"This partnership aligns two leaders in their respective areas of expertise," said Joseph Krivulka, co-founder and President of Reliant. "We intend to capitalize on the strengths of our two organizations - combining Alkermes' expertise in formulation, clinical development and manufacturing with Reliant's ability to bring new products to the market place and successfully support them after launch."
About ReliantReliant Pharmaceuticals, LLC, located in Liberty Corner, New Jersey, is a privately-held company owned primarily by Pritzker family business interests, Bay City Capital, management and members of its Board. Other investors in Reliant include Versant Ventures and Invemed/Gladwyne Partners. Reliant employs over 100 marketing, clinical, regulatory, and support staff at its headquarters in addition to a sales management team which oversees a national sales force of 750 full-time professionals.
Reliant, founded late in 1999, markets three branded, patent-protected pharmaceutical products to U.S.-based primary care and targeted specialty physicians: Lescol(R) (fluvastatin) and Lescol(R) XL (fluvastatin sodium) extended-release tablets developed by Novartis; DynaCirc(R) (isradipine) and DynaCirc CR(R), an extended-release formulation, also developed by Novartis, and Axid(R) (nizatidine) developed by Eli Lilly & Company. Sales of these products may approach one-half billion dollars in 2001. The company develops and implements sophisticated life cycle strategies to extend marketing exclusivity or provide additional patent protection for its products. The company currently has two new drug applications pending with the U.S. Food and Drug Administration and several ongoing development projects.
About AlkermesAlkermes is a leader in the development of products based on sophisticated drug delivery technologies. We have several areas of focus, including (i) controlled, sustained-release of injectable drugs lasting several days to several weeks, using our ProLease(R) and Medisorb(R) technologies and (ii) the development of pharmaceutical products based on our proprietary AIR(TM) pulmonary technology. In addition to our Cambridge, Massachusetts, headquarters, research and manufacturing facilities, Alkermes operates research and manufacturing facilities in Ohio and a medical affairs office in Cambridge, England.
Certain statements set forth above may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that such statements are based on reasonable assumptions within the bounds of our knowledge of our business and operations, there can be no assurance that we will be able to successfully consummate the marketing or co-marketing by Reliant of Alkermes' products, the co-development of new product candidates, the potential acquisition of products or product candidates from third parties, or the application of Alkermes' proprietary drug delivery technologies and manufacturing capabilities to Reliant's expanding product portfolio.
Alkermes' business is subject to significant risks and there can be no assurance that actual results of its development activities and its results of operations will not differ materially from its expectations. For information with respect to factors that could cause actual results to differ from expectations, reference is made to the reports filed by Alkermes with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.
Alkermes is hosting a live webcast at 7:30 a.m. Eastern Daylight time today, December 18, 2001. The webcast can be accessed by going to: http://www.corporate-ir.net/ireye/ ir_site.zhtml?ticker=ALKS&script=2100
The webcast will be archived and available for replay through the close of business on Friday, December 20, 2001.
CONTACT: Alkermes, Inc.
Rebecca Peterson
(617) 583-6378
or
Reliant Pharmaceuticals, LLC
Lawrence A. Gyenes
(908) 542-4402
or
Burns McClellan
Lisa Burns
(212) 213-4281
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