Alkermes Plc · NASDAQ:ALKS

Alkermes — Merger or Acquisition (June 2011)

20 slides from Alkermes's merger presentation, Jun 6, 2011

  1. Slide 1: Delivering in 2011

    Delivering in 2011 June 2011 COPYRIGHT © 2011 ALKERMES, INC. 1

  2. Slide 2: Forward-looking statements

    ® Certain statements in this presentation may constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements about the operational and financial benefits of the business combination. Forward-looking informatio

  3. Slide 3: Important Additional Information and Where to Find It

    ® Important Additional Information and Where to Find It This communication does not constitute an offer to sell, or the solicitation of an offer to sell, or the solicitation of an offer to subscribe for or buy, any securities nor shall there be any sale, issuance or transfer of securities in any jur

  4. Slide 4: Alkermes and EDT: A Transformational Transaction

    ® Alkermes and EDT: A Transformational Transaction o o Financially Operationally Immediate profitability on a cash earnings basis and expanding Adjusted EBITDA margins Global biopharmaceutical company with proven track record of innovation o o Accretive transaction o Growing revenues in excess milli

  5. Slide 5: Five Major Products Drive Long-Term Growth

    ® AMPYRA ® (18% manufacturing and royalty rate) Five Major Products Drive Long-Term Growth o Treatment to improve walking in patients with multiple sclerosis (MS) o Launched in U.S. in 2010, CHMP recommended approval in EU in May 2011 o Patent life into 2026 VIVITROL ® (Proprietary product) o Once-m

  6. Slide 6: AMPYRA

    ® AMPYRA ® o Treatment to ($ ) 50 52 50 47 60 improve MM) walking in patients with multiple sclerosis (MS) 40 o Expands Alkermes’ current therapeutic scope into MS o Launched U S 2010 28 20 30 in U.S. in 2010, CHMP recommended approval in EU in May 2011 3 10 o Marketed by Acorda in U.S., partnered w

  7. Slide 7: VIVITROL

    ® VIVITROL ® o Once-monthly injectable ($MM) medication for alcohol and opioid dependence 27 30 o Currently launching opioid indication o Patent 21 20 life into 2029 o Proprietary product, currently marketed by Alkermes in 10 9 y U.S. 0 FY09 FY10 LTM (1) COPYRIGHT © 2011 ALKERMES, INC. Product Sales

  8. Slide 8: BYDUREON

    ® BYDUREON™ o First once-weekly GLP-1 for type 2 diabetes o Long-acting version of Amylin’s BYETTA ® ($538 million LTM1 sales) o CHMP recommendation for approval in Europe on 4/15/2011, anticipated launch 2H 2011 o Planned U.S. resubmission 2H 2011 o Patent life into 2025 o Marketed by Eli Lilly and

  9. Slide 9: RISPERDAL CONSTA

    ® RISPERDAL ® CONSTA ® o Leading long-acting injectable antipsychotic for schizophrenia/bipolar I disorder o Approved in over 90 countries, $1.5 billion in endmarket sales o Johnson & Johnson’s 3rd largest pharmaceutical brand by product revenues in 2010 o Patent life into 2020 in U.S., 2021 in Euro

  10. Slide 10: INVEGA SUSTENNA

    ® INVEGA ® SUSTENNA ® o Long-acting injectable antipsychotic for schizophrenia o First monthly depot schizophrenia drug o First commercialized NanoCrystal ® depot product o Approved in U.S. and Europe, recent UK launch o Marketed by Johnson & Johnson o Patent life into 2019 o Tiered royalty rates on

  11. Slide 11: Combined Pipeline: CNS Focus

    ® Combined Pipeline: CNS Focus Schizophrenia Depression Reward Disorders Pain OIC MS ALKS 9070 RISPERDAL ® CONSTA ® ALKS 33/BUP ALKS 33 (binge eating) ALKS 33 Meloxicam IV ZX002 ALKS 37 AMPYRA ® INVEGA ® SUSTENNA ® (alcohol dependence) ALKS 33/BUP ALKS 36 (cocaine addiction) VIVITROL ® COPYRIGHT © 2

  12. Slide 12: Strong Strategic Fit at the Right Time

    ® Strong Strategic Fit at the Right Time o EDT positioned for growth; AMPYRA ® and INVEGA ® SUSTENNA ® at beginning of their growth trajectories o Complementary world-class drug formulation and manufacturing expertise o CNS focused product portfolios — Royalties from long-acting atypical antipsychot

  13. Slide 13: EDT: Established Model for Profitability

    ® EDT: Established Model for Profitability o 40-year history with >35 approved drugs o Commercial portfolio of 22 marketed drugs o NanoCrystal ® and Oral Controlled Release technologies o Track record of innovation: — AMPYRA ® , AVINZA ® , NAPRELAN ® and VERELAN ® o Diversified revenue streams — Roy

  14. Slide 14: Deep Product Portfolio with Diversified Revenue Streams

    ® Deep Product Portfolio with Diversified Revenue Streams Products Mfg Rev Royalties Avinza ® ?? ?? 274 300 ($MM) Luvox ® CR ?? ?? Diltiazem ® ?? — Naprelan ® ?? — Rapamune ® ?? — 200 Ritalin ® LA / Focalin ® XR ?? ?? Verelan ® ?? ?? Zanaflex ® Capsules ?? ?? Emend ® ?? ?? Megace ® ES — ?? Skelaxin

  15. Slide 15: Key Transaction Terms

    ® Key Transaction Terms Purchase Price Cash: $500 million Equity: 31.9 million shares (~25% of pro forma company) Funding Combination of cash on balance sheet and prepayable new term loan New debt of up to $450 million with secured financing from Morgan Stanley and HSBC Financial Impact Pro forma co

  16. Slide 16: Alkermes plc: Financial Strength

    ® Alkermes plc: Financial Strength o Trailing 12 months as of March 31, 2011 — Pro forma revenues ~$450 million — Pro forma Adjusted EBITDA ~$80 million o Pro forma revenues — Double-digit growth rates in FY’13 and beyond o Pro forma Adjusted EBITDA margins — Expected to be in range of 15-20% in FY’

  17. Slide 17: Meaningful Increase in Revenues & Profitability

    ® Meaningful Increase in Revenues & Profitability 100 Adj. EBITDA FY’11 500 Revenue FY’11 75 400 300 50 $MM) $MM) 25 100 200 ($ ($ (25) 0 0 COPYRIGHT © 2011 ALKERMES, INC. Alkermes, Inc. Standalone Alkermes plc Pro Forma Alkermes plc Pro Forma Alkermes, Inc. Standalone 17

  18. Slide 18: Alkermes plc: Diversified Revenue Base

    ® Alkermes plc: Diversified Revenue Base (based on CY ‘10) BYDUREON™ VIVITROL ® MEGACE ® SKELAXIN ® Other TRICOR ® O ® RISPERDAL ® CONSTA ® LUVOXZANAFLEX ® RAPAMUNE ® DILTIAZAM ® NAPRELAN ® AVINZA ® FOCALIN ® / RITALIN ® VERELAN ® INVEGA ® SUSTENNA ® BYDUREON™ VIVITROL ® RISPERDAL ® CONSTA ® AMPYRA

  19. Slide 19: Alkermes and EDT: A Transformational Transaction

    ® Alkermes and EDT: A Transformational Transaction o o Financially Operationally Immediate profitability on a cash earnings basis and expanding Adjusted EBITDA margins Global biopharmaceutical company with proven track record of innovation o o Accretive transaction o Growing revenues in excess milli

  20. Slide 20: www.alkermes.com

    www.alkermes.com COPYRIGHT © 2011 ALKERMES, INC. 20

Alkermes — Merger or Acquisition (June 2011) on 6ix