Flying high on Elan deal, Alkermes gets to work on Big Pharma project

Alkermes ($ALKS) is taking immediate occupancy of an Elan Drug Technologies' Athalone, Ireland, facility following its $1 billion acquisition of the latter's drug technology business. Alkermes disclosed on Monday it will manufacture a drug for a Big Pharma company at the Athalone plant.

The company, now larger and more diversified, is in the enviable position of still deriving much of its near-term revenue from royalties tied to its drug-delivery technology platforms, but it will also ratchet up the development of its own drugs, according to The Street.

Alkermes expects an additional $15 million to $20 million in annual revenues by 2016 from the manufacturing deal with the Big Pharma outfit, which the firm declined to name.

Alkermes Chairman Shane Cooke told Reuters that he sees opportunities for similar deals, but they're not Alkermes' core business. The company aims to harness the bulk of its efforts on advancing new and improved meds, which it can produce and market on its own.

- here's The Street's take
- see the Reuters report