Alkermes Plc · NASDAQ:ALKS
Alkermes — Merger or Acquisition (May 2011)
20 slides from Alkermes's merger presentation, May 12, 2011
Slide 1: Alkermes plc: Products, Profitability and Growth
Alkermes plc: Products, Profitability and Growth May 2011
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 information
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 juris
Slide 4: Alkermes and EDT: A Transformational Transaction
Alkermes and EDT: A Transformational Transaction Financially Operationally o Immediate profitability on a o Global biopharmaceutical cash earnings basis and company with proven track expanding Adjusted EBITDA record of innovation margins o Leader in CNS product o Accretive transaction development o
Slide 5: Five Major Products Drive Long-Term Growth
Five Major Products Drive Long-Term Growth AMPYRA ® (18% manufacturing and royalty rate) o Treatment to improve walking in patients with multiple sclerosis (MS) o Launched in U.S. in 2010, MAA filed in Europe o Patent life into 2026 VIVITROL ® (Proprietary product) o Once-monthly injectable medicati
Slide 6: AMPYRA
® AMPYRA ® o Treatment to improve walking in patients with multiple sclerosis (MS) o Expands Alkermes therapeutic scope into MS o Launched in U.S. in 2010, MAA filed in Europe o Marketed by Acorda in U.S., partnered with Biogen Idec in Europe o Patent life into 2026 o 18% manufacturing and royalty r
Slide 7: VIVITROL
® VIVITROL ® o Once-monthly injectable medication for alcohol and opioid dependence o Currently launching opioid indication o Patent life into 2029 o Proprietary product, currently marketed by Alkermes in U.S. 1. LTM (last twelve months) as of 12/31/2010 COPYRIGHT © 2011 ALKERMES, INC.
Slide 8: BYDUREON
® BYDUREON o First once-weekly GLP-1 for type 2 diabetes o Long-acting version of Amylin s BYETTA ® ($538 million LTM 1 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
Slide 9: RISPERDAL CONSTA
® RISPERDAL ® CONSTA o Leading long-acting injectable antipsychotic for schizophrenia/bipolar I disorder o Approved in over 90 countries, $1.5 billion in end-market sales o Johnson & rd largest pharmaceutical brand by product revenues in 2010 o Patent life into 2020 in U.S., 2021 in Europe o 10% man
Slide 10: INVEGA SUSTENNA
® INVEGA ® SUSTENNA ® o Long-acting injectable antipsychotic for schizophrenia o First monthly depot schizophrenia drug o First commercialized NanoCrystal ® depot product o Approved in U.S. and Europe, recent UK launch o Marketed by Johnson & Johnson o Patent life into 2019 o Tiered royalty rates on
Slide 11: Combined Pipeline: CNS Focus
® Combined Pipeline: CNS Focus Reward Schizophrenia Depression Disorders Pain OIC MS ALKS 9070 ALKS 33/BUP ALKS 33 Meloxicam IV ALKS 37 AMPYRA ® (binge eating) RISPERDAL ® ZX002 CONSTA ® ALKS 33 (alcohol ALKS 36 INVEGA ® dependence) SUSTENNA ® ALKS 33/BUP (cocaine addiction) VIVITROL ® COPYRIGHT © 2
Slide 12: Strong Strategic Fit at the Right Time
® Strong Strategic Fit at the Right Time o EDT positioned for growth; AMPYRA ® and INVEGA ® SUSTENNA ® at beginning of their growth trajectories o Complementary world-class drug formulation and manufacturing expertise o CNS focused product portfolios - Royalties from long-acting atypical antipsychot
Slide 13: EDT: Established Model for Profitability
® EDT: Established Model for Profitability o 40-year history with >35 approved drugs o Commercial portfolio of 22 marketed drugs o NanoCrystal ® and Oral Controlled Release technologies o Track record of innovation: — AMPYRA ® , AVINZA ® , NAPRELAN ® and VERELAN ® o Diversified revenue streams — Roy
Slide 14: Deep Product Portfolio with Diversified Revenue Streams
® Deep Product Portfolio with Diversified Revenue Streams Products Mfg Rev Royalties ($MM) 300 Avinza ® 274 Luvox ® CR Diltiazem ® Naprelan ® Rapamune ® 200 Ritalin ® LA / Focalin ® XR Verelan ® Zanaflex ® Capsules 104 Emend ® 100 Megace ® ES Skelaxin ® Tricor ® 145 Recent Launches Mfg Rev Royalties
Slide 15: Key Transaction Terms
® Key Transaction Terms Purchase Price Cash: $500 million Equity: 31.9 million shares (~25% of pro forma company) Combination of cash on balance sheet and prepayable new term loan Funding New debt of up to $450 million with secured financing from Morgan Stanley and HSBC Pro forma company immediately
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 o Pro forma Adjusted EBITDA margins — Expected to be in range of 15-20% in — Expand to 30-35% in F
Slide 17: Meaningful Increase in Revenues & Profitability
® Meaningful Increase in Revenues & Profitability Revenue Adj. EBITDA
Slide 18: Alkermes plc: Diversified Revenue Base
® Alkermes plc: Diversified Revenue Base (based on CY 10)
Slide 19: Alkermes and EDT: A Transformational Transaction
® Alkermes and EDT: A Transformational Transaction Financially Operationally o Immediate profitability on a o Global biopharmaceutical cash earnings basis and company with proven track expanding Adjusted EBITDA record of innovation margins o Leader in CNS product o Accretive transaction development
Slide 20: Alkermes
(Alkermes Patient inspired” www.alkermes.com COPYRIGHT © 2011 ALKERMES, INC.