Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Alkermes has reported that it will receive up to $174 million in cash in connection with the acquisition of Reliant Pharmaceuticals by GlaxoSmithKline.
Subscribe to our email newsletter
Alkermes will receive $166.3 million upon closing of the transaction and up to an additional $7.7 million subject to the terms and conditions of an escrow arrangement that will remain in effect for a 15-month period following the closing of the transaction.
Alkermes plans to utilize proceeds from the sale of its stake in Reliant and existing cash to repurchase shares of its common stock. Under the November 2007 stock repurchase program, the board of directors has authorized management to repurchase up to $175 million of its common stock.
James Frates, CFO of Alkermes, said: “The sale of our Reliant investment has provided us with the means to further provide value to our shareholders. Our intent to repurchase common stock reflects our confidence in the value of our commercial products and pipeline, which has grown even stronger with the progress we have made during calendar 2007.”