Slide 1: Alkermes Presentation June 6, 2023
Alkermes Presentation June 6, 2023
Slide 2: Alkermes develops, manufactures and commercializes innovative medicines
Alkermes develops, manufactures and commercializes innovative medicines Global pharma company headquartered in Ireland, founded in 1987 Financial Summary 5 Year Total Return 20% 0% -20% -40% ALKS: -38% -60% -80% Share Price ($) (06/02/23) 29.51 Basic shares outstanding (mm) 166.1 Market Cap ($M) 4,9
Slide 3: Alkermes is made up of a patchwork of subscale business units
Alkermes is made up of a patchwork of subscale business units Commercial products for addiction and mental illnesses Manufacturing Royalties from drugs with licensed Alkermes technology Research and Development Oncology (to be spun) 10
Slide 4: Alkermes' assets are valuable, but the current business model traps shareholder value
Alkermes’ assets are valuable, but the current business model traps and destroys shareholder value Alkermes if optimally run for shareholders is worth meaningfully more than the current valuation ALKS current valuation ALKS run for shareholders Upgrade Alkermes 10 Note: not to scale
Slide 5: Sarissa Capital has best-in-class expertise in constructive shareholder engagement
Sarissa Capital has best-in-class expertise in constructive shareholder engagement in the healthcare sector 10 A bottom-up approach focusing on high quality drugs at deep value entry points. Actively works to execute an operational turnaround often through board influence and shareholder support Inv
Slide 6: Sarissa has a history of creating value for shareholders in healthcare
Sarissa has a history of creating value for shareholders in the healthcare space Acquired 2020, $9.7 Bn 10 Acquired 2018, $11.6 Bn Acquired 2017, $5.2 Bn Acquired 2014, $3.85 Bn Position initiated 2015 Sarissa joined board 2016 Chairman of the Board 2018 - 2020 Position initiated 2017 Sarissa joined
Slide 7: Sarissa has made significant efforts to settle
Although Sarissa feels strongly about board representation, we have made significant efforts to settle 10 We are trying hard to avoid this proxy contest and have offered reasonable settlement compromises including delaying our appointment to the board and making it contingent upon stock price target
Slide 8: Alkermes offered to meet with us twice per year
Instead of accepting Sarissa’s latest proposal, Alkermes offered to meet with us twice per year Sarissa Alkermes Particularly odd given most companies meet with major shareholders at least four times per year as matter of course 10
Slide 9: Vote the BLUE universal card to upgrade Alkermes
BLUE VOTE THE UNIVERSAL CARD TO UPGRADE ALKERMES UPGRADEALKERMES.COM Vote before General Meeting of Alkermes shareholders scheduled for June 29, 2023. We urge all shareholders to vote today. 10 ONLY VOTE 1 CARD. DISCARD THE WHITE PROXY CARD Vote “FOR” the election of Sarissa Nominees Vote “AGAINST”
Slide 10: Summary
Summary 10 Alkermes has destroyed meaningful shareholder value Alkermes is a hodgepodge of businesses Pops is the wrong person to lead Adding Sarissa representatives to the board of directors will add needed perspectives and skills and unlock shareholder value
Slide 11: Alkermes' price performance versus biotech index since early years
Alkermes’ price performance since its early years in public market is dreadful compared to biotech index Nasdaq Biotechnology Index (NBI) started 11/1/1993 Difference of +1,429% 0% -500% 500% 1000% 1500% 2000% 3000% 2500% ALKS NBI Source: Bloomberg (6/2/23) 11 ALKS: +530% NBI: +1,959%
Slide 12: ALKS price performance last 10 years
400% 350% 300% 250% 200% 150% 100% 50% 0% -50% -100% ALKS IBB XBI NBI ALKS price performance last 10 years ALKS: -4.9% XBI: +136% NBI: +124% IBB: +118% Difference up to 141% Source: Bloomberg (6/2/23) 11
Slide 13: ALKS price performance last years
ALKS price performance last 5 years 100% 80% 60% 40% 20% 0% -20% -40% -60% -80% ALKS IBB XBI NBI ALKS: -35.3% NBI: +21.2% IBB: +18.2% XBI: -10.4% Difference up to 56% Source: Bloomberg (6/2/23) 11
Slide 14: ALKS recent stock price movement
$0 $10 $20 $30 $40 $50 $60 $/Share ALKS recent stock price movement… déjà vu all over again Here we go again… Source: Bloomberg (6/2/23) 11
Slide 15: Revenue nearly doubled since 2015 but stock price more than halved
Since 2015 Alkermes has almost doubled revenue to >$1 Bn…but ALKS stock price has more than halved Source: Bloomberg (6/2/23) / Price performance shown from 1/2/2015 to 12/30/2022 Wide divergence in revenue growth and stock price indicates a real problem Alkermes stock price performance has been poo
Slide 16: Alkermes revenue vs operating loss
$903 $1,094 $1,171 $1,039 $1,174 $1,112 -$148 -$99 -$175 -$112 -$29 -$142 -$400 -$200 $800 $600 $400 $200 $0 $1,000 $1,200 $1,400 2017 2018 2019 2020 2021 2022 $M Despite multiple years with revenues >$1Bn, the company continues to operate at a loss Alkermes Revenue vs Operating Loss Revenue Operati
Slide 17: Over $1 Bn revenue and still operating at a loss
Generating >$1 Bn in revenue for 5 years and still operating at a loss indicates a fundamental problem with the business model Impressive, I know. You try to do it! 16 How do you generate >$ 1 Bn in revenue every year and still lose money???
Slide 18: Alkermes burned through over $5.5 Bn in revenue
Alkermes burned through >$5.5 Bn in revenue over the last 5 years, the equivalent of buying the Boston Red Sox and still having ~$1 Bn left over… Source: Alkermes corporate filings and NBCsports.com + ~$1 billion cash 16
Slide 19: Management touts revenue generation but costs are out of control
Management touts successful revenue generation but costs are out of control 2022 Revenue Expenses 2021 19 2020 2019 2018 Revenue Expenses Revenue Expenses Revenue Expenses Revenue Expenses1 Expenses = COGS + R&D + SG&A + Other, including amort of acquired intangibles Source: Alkermes corporate filin
Slide 20: Board needs shareholder representation
Alkermes’ board needs shareholder representation to prevent further destruction of shareholder value 19
Slide 21: Summary
Summary 19 Alkermes has destroyed meaningful shareholder value Alkermes is a hodgepodge of businesses Pops is the wrong person to lead Adding Sarissa representatives to the board of directors will add needed perspectives and skills and unlock shareholder value
Slide 22: Over $1 Bn revenue and still operating at a loss
Generating >$1 Bn in revenue for 5 years and still operating at a loss indicates a fundamental problem with the business model Let me show you how it’s done… 19 How do you generate >$ 1 Bn in revenue every year and still lose money???
Slide 23: Alkermes is a patchwork of subscale businesses with bloated expenses
At its core, Alkermes is a patchwork of subscale businesses with bloated expenses “The House That Pops Built” 19 Commercial Large revenue potential but commercial model is subscale and fails to reach the economies of scale of larger pharma companies Royalties Valuable royalty revenue for out-license
Slide 24: Alkermes receives royalties on its proprietary technologies
[1] Alkermes receives royalties on its proprietary technologies 19 Description of Current Key Royalty Streams Drug Indication(s) 2022 Net Product Sales Expiration Invega Products (JNJ1) Schizophrenia & Schizoaffective Disorder ~$4.1 Bn Patent royalties 2030 US - Know-how royalties with Interim Award
Slide 25: Collecting royalties is lucrative and straightforward
Collecting these royalties is incredibly lucrative and straightforward, like collecting checks Royalty Revenue Breakout 394 344 365 436 220 1 200 100 300 400 500 Revenues ($M) 0 2018 Risperdal consta 2019 2020 2021 Invega Ampyra/Fampyra Other 2022 Vumerity Expenses associated with royalties should b
Slide 26: Royalty expenses are de minimis for roughly 1/3 of revenue
What makes Alkermes’ spending so remarkable for roughly 1/3rd of its revenue (royalties), expenses are de minimis1 36% 29% 35% 37% 20% $0 $200 $1,200 $1,000 $800 $600 $400 2018 2019 2020 2021 $M Royalties as % of Total Revenue Royalties Total Revenue !Royalties in 2022 negatively impacted by dispu
Slide 27: Alkermes has 3 drugs that it commercializes
Category Vivitrol Aristada Lybalvi Indication Alcohol and Opioid Use Disorder Schizophrenia Adult schizophrenia and Bipolar I Disorder Description Opioid receptor antagonist Long-acting injectable aripiprazole Combination of Zyprexa (olanzapine) and samidorphan Method of Administration Intramuscular
Slide 28: Revenues from commercial franchise have grown
Revenues from its commercial franchise have grown and are promising Commercial Revenues by Drug $363 $450 $524 $552 $627 $778 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Revenues ($M) 2017 2018 2019 2020 2021 2022 Vivitrol Aristada Lybalvi Revenue CAGR: +16.5% Source: Alkermes corporate filings
Slide 29: Commercial revenues have come at a tremendous cost
But commercial revenues have come at a tremendous cost (i.e., inefficient) 74% 61% 58% 50% $0 $100 $200 $300 $400 $500 $600 $700 $800 2019 2022 $M Selling & Marketing (S&M) expenses as % of commercial revenues S&M expenses 2020 2021 Commercial franchise revenues Sales and marketing expenses have bee
Slide 30: Aristada, Lybalvi, and Vivitrol target massive markets
Aristada, Lybalvi, and Vivitrol target massive markets, far larger than what a midcap biotech can service efficiently Sources: Corporate presentation (3/2023) and 10-K (2/16/23) Schizophrenia Bipolar I Disorder Opioid Dependence Alcohol Dependence US market (adults) ~2,600,000 ~3,900,000 – 5,200,000
Slide 31: Large pharma benefits from economies of scale
135 225 241 297 360 421 4.6 0 50 100 150 200 250 300 350 400 450 ALKS SNY PFE NVS MRK NVO LLY Enterprise Value ($Bn) Enterprise values of companies with salesforces Large pharmaceutical companies benefit from economies of scale and marketing muscle, leaving smaller companies like Alkermes at a disad
Slide 32: Self commercialization model lacks economies of scale
Alkermes’ self commercialization model lacks economies of scale, destroying tremendous shareholder value More efficient use of salesforce Sales rep (Alkermes) Commercializing only a few drugs with call points that do not sufficiently overlap lacks scale Sales reps (Company B) 31
Slide 33: Management admits it is expensive to commercialize its drugs
I think the key here is building out in a competitive space, both in schizophrenia and in addiction, building out a fully capable sales organization. And as we've grown, I think, to continue to show that long term gap in growth that Rich talked about that we're looking for in the top line, making su
Slide 34: Alkermes manufactures drugs for itself and third parties
[3] Alkermes manufactures drugs for itself and third parties Wilmington, Ohio, USA Athlone, Ireland Tremendous shareholder capital has been spent developing manufacturing capabilities but unclear if Alkermes can excel at manufacturing Notable products manufactured at each facility: Source: Alkermes
Slide 35: Manufacturing is not a core competency for Alkermes
Manufacturing is not a core competency for Alkermes as recent missteps have shown Lybalvi Complete Response Letter Due to Manufacturing Vumerity Manufacturing Issues Lybalvi received a complete response letter from FDA in 11/2020 due to manufacturing concerns When Lybalvi was finally approved in 6/2
Slide 36: Manufacturing revenues have been small and not growing
133 104 119 106 112 100 80 60 40 20 0 120 140 2018 2019 2020 2021 2022 Revenues ($M) Risperdal consta Ampyra/Fampyra Other Vumerity Manufacturing revenues have been small and not growing Source: Alkermes corporate filings Stagnant revenues 36
Slide 37: Manufacturing business lacks scale and is likely not profitable
133 104 119 106 112 20 0 80 60 40 120 100 140 2018 2019 2020 2021 2022 Manufacturing Revenues ($M) Alkermes’ manufacturing business lacks scale and is likely not profitable *Manufacturing expense estimate based on Sarissa assumptions of the following: ~1,000 employees as specified by the 2019 Alkerm
Slide 38: Manufacturing can be optimized in the hands of the right company
Alkermes’ manufacturing business can be optimized in the hands of the right company A company with scale and expertise in manufacturing can make better use of shareholder capital and minimize regulatory disruptions and commercial delays Company with established scale and expertise in manufacturing V
Slide 39: R&D pipeline spending heavily far afield in cancer
[4] R&D pipeline reflects a company with expertise in neuropsychiatry spending heavily far afield in cancer with uncertain promise Source: Company Website (June 2023) First rule of R&D: Do something you’re not good at and see what happens 37
Slide 40: R&D spend at 35-45% of revenue has been excessive
And it costs a lot: R&D spend at ~35-45% of revenue has been excessive 39% 44% 38% 35% 35% $0 $200 $1,200 $1,000 $800 $600 $400 2018 2019 2020 2021 2022 $M R&D as % of Total Revenue GAAP R&D Total Revenue >$2 Bn spent on R&D in the last 5 years! Source: Alkermes corporate filings 40
Slide 41: Lead oncology asset nemvaleukin has been expensive
Lead oncology asset nemvaleukin has been expensive (external + est. internal R&D) $7 $8 $12 $45 $81 $161 $162 $170 $20 $0 $60 $40 $180 $160 $140 $120 $100 $80 2021 2022 $M Nemvaleukin Alfa (ALKS 4230) R&D Spend 2015 2016 2017 2018 2019 2020 External R&D Spend Estimated Internal R&D Spend* While trem
Slide 42: Alkermes admits mismatch of cancer R&D within neuroscience
After years, Alkermes admits the mismatch of costly cancer R&D within its core neuroscience business Alkermes press release June 2023 Even Alkermes now (belatedly) admits that the oncology business distracts the company from its neuroscience business and achieving profitability 42 Source: Company pr
Slide 43: Alkermes destroyed capital on wishful R&D programs
Even within neuroscience, Alkermes has destroyed shareholder capital on wishful R&D programs Alkermes threw away millions running five Phase 3 trials on a drug to treat depression that was ultimately rejected by the FDA 42
Slide 44: Of 2021 R&D Day programs, only orexin has a clear future
Of the programs highlighted in the 2021 R&D Day, only orexin has a clearly articulated future Source: Alkermes Investor Day 2021 We agree ALKS 2680 is promising (high risk/high reward), but since its R&D Day in 2021, Alkermes burned hundreds of millions of dollars to achieve this Getting spun out 42
Slide 45: Unclear if anything of value will emerge from Rodin acquisition
Unclear if anything of value will emerge from the acquisition of Rodin Therapeutics in 2019 Sources: pharmaceutical-technology.com, Alkermes 3Q2022 earnings call (11/2/22) ~3 years later “On the HDAC, we stopped the development of 1140, which was the first one we put in the clinic because of the met
Slide 46: How you generate over $1 Bn in revenue and still lose money
And that, folks, is how you generate >$ 1 Bn in revenue every year and still lose money Let’s see how much I can spend this year! 45 Generating >$1 Bn in revenue for 5 years and still operating at a loss indicates a fundamental problem with the business model
Slide 47: Summary
Summary 45 Alkermes has destroyed meaningful shareholder value Alkermes is a hodgepodge of businesses Pops is the wrong person to lead Adding Sarissa representatives to the board of directors will add needed perspectives and skills and unlock shareholder value
Slide 48: CEO Pops at the helm despite poor performance since 1991
$60 $80 $120 $100 $40 $20 $0 7/16/1991 1/5/1997 6/28/2002 12/19/2007 6/10/2013 12/1/2018 $/Share Despite poor performance since 1991, one thing has been a constant: CEO Pops at the helm of Alkermes Source: Bloomberg (6/2/23) Dissolution of the Soviet Union 45 “The definition of insanity is doing the
Slide 49: We cannot trust Pops to get us out of this mess
We cannot trust Pops to get us out of this mess when he spent decades creating the mess "Morning, boys. How's the water?" "What the h*ll is water?" Source: Transcription of 2005 Kenyon Commencement Address (May 2005) given by David Foster Wallace 49
Slide 50: CEO Pops teases investors with false promises
A masterful salesman, CEO Pops teases investors with false promises but never quite delivers Source: Alkermes earnings calls (4Q20, 1Q21 and 4Q22) 1In 2023 Years of emphasizing “a focus on profitability” Alkermes still remains GAAP unprofitable >$1bn in revenues still result in negative net income “
Slide 51: Pops appears to offer alternative narratives
Pops appears to offer alternative narratives Source: Alkermes conference call (6/1/21) and JPM conference call series (11/19/21) Richard Pops on 1Q21 earnings call (June 2021) J.P. Morgan Conference (November 2021) June 2021 – Pops attributes delay in Lybalvi launch to manufacturing issues Lybalvi r
Slide 52: Pops overpromises and underdelivers on oncology updates
Pops known to overpromise and underdeliver – here on timing of oncology updates Alkermes 1Q2023 Earnings (April 2023) Alkermes 3Q2022 Earnings (November 2022) Question: “…I feel like this will be so important to the valuation of spin, when should we be expecting a DSMB look into ARTISTRY-6 and 7 in
Slide 53: Overpromised on a partnership for nemvaleukin
Pops has overpromised and underdelivered on a partnership for its oncology asset nemvaleukin for years *Source: Alkermes Earnings Call Transcripts 4Q2019 Earnings Call “Well, I think a lot will depend Pam on the exact partnership. I mean, as Rich outlined, there's both commercial as well as scientif
Slide 54: Pops has lost credibility in the eyes of shareholders
Pops has lost credibility in the eyes of shareholders Alkermes’ largest blue-chip investor voted against them in 2021 and subsequently sold their entire stake Many institutional shareholders have voiced displeasure with Pops to Sarissa Press for change 51
Slide 55: Sarissa Capital Management LP
SARISSA CAPITAL MANAGEMENT LP
Slide 56: Pops pads his pockets with excessive compensation
For poor performance, Pops pads his pockets with excessive compensation Source: Alkermes Proxy Statement While the company is operating net income negative, Pops personally is REALLY net income positive 56
Slide 57: Pops has personally made over $150M
In fact, over the past 15 years, he has personally made >$150M* Shareholder Capital Alkermes 57 CEO Pops’ Net Worth Source: Alkermes Proxy Statements * Calculated by adding Richard Pops’ compensation from 2007-2022, inflation adjusted Over the last 15 years, Alkermes has a cumulative net loss >$1 Bn
Slide 58: Questionable roadshow to lobby against Sarissa representation
Most interested in keeping his job, we understand Pops recently undertook a questionable roadshow to lobby against Sarissa representation on the board 57 We find this conduct highly unusual and concerning, particularly given that it occurred during the company’s quiet period and prior to the filing
Slide 59: CEO cares more about compensation than stock price
$0 $20 $40 $60 $80 $100 $120 7/16/1991 1/5/1997 6/28/2002 12/19/2007 6/10/2013 12/1/2018 $/Share We can only speculate that CEO Pops cares more about his compensation and image than Alkermes’ stock price Source: Bloomberg (6/2/23) 57
Slide 60: Summary
Summary 57 Alkermes has destroyed meaningful shareholder value Alkermes is a hodgepodge of businesses Pops is the wrong person to lead Adding Sarissa representatives to the board of directors will add needed perspectives and skills and unlock shareholder value
Slide 61: Poor corporate governance impedes value creation
Alkermes’ poor corporate governance impedes value creation CEO and Chairman Richard Pops has entrenched himself and ignores the proper governance checks and balances between the board and management Lack of shareholders, the owners of Alkermes, on the board Insufficient, half-hearted governance by A
Slide 62: Board waited years on a grossly inadequate profitability plan
The board waited 30 years to appease shareholders’ desire for profitability with a plan that is grossly inadequate and disregards the fundamental issues at Alkermes Source: Alkermes Press Release (December 2020) Only after heavy shareholder pressure, including from Sarissa, did Pops commit to “adjus
Slide 63: Profitability commitments are on non-GAAP and vague metrics
Furthermore, the profitability commitments are on non-GAAP and vague metrics, giving the board plenty of “adjusting” room to obfuscate poor performance 1Calculated as earnings before interest, taxation, depreciation, amortization and one-time items, includes Alkermes Press Release December 2020 Alke
Slide 64: Adjusted EBITDA vs EBITDA vs net income explained
Adjusted EBITDA vs EBITDA vs net income explained Source: Twitter 5/30/2023 64 Of course, Alkermes’ net income is negative
Slide 65: Destaggering of the board delayed and shareholder unfriendly
Under pressure from shareholders, in 2020 Alkermes announced destaggering of the board but in a delayed and shareholder unfriendly way Source: Alkermes Proxy 2022 “On June 11, 2021, Mr. Gaffin and Mr. DiPaolo [Sarissa] discussed the Company’s proxy proposals for the 2021 AGM. Mr. DiPaolo expressed d
Slide 66: Governance largely controlled by Pops
Governance at Alkermes has largely been controlled by Pops in Sarissa’s interactions Sarissa would like to discuss shareholder representation on the Board of Directors You can talk to me about that You can talk to Pops about that 65 Alkermes’ board For almost 2 years, Sarissa did not interact with a
Slide 67: Multi-year discussions on board representation flowing through Pops
Sarissa has had multi-year discussions on board representation with most conversations flowing through Pops Source: Sarissa press release (May 2022) 2020 2021 2022 2023 Sarissa discusses with CEO Pops the benefits of shareholder presence on the Board Sarissa continued to express concerns to CEO Pops
Slide 68: Board rejected all Sarissa nominees in 2022
Alkermes board rejected all Sarissa nominees in 2022 without ever meeting or speaking with them From my view, they are 65 unacceptable!
Slide 69: Efforts met with resistance and stalling tactics
Our efforts to add Sarissa shareholder representatives to the board have been met with resistance and stalling tactics Having one of the largest shareholders on the board will help Alkermes be run for shareholders 65
Slide 70: Alkermes shuns Sarissa representation despite spin-off expertise
Despite Sarissa’s expertise in company spin-offs, Alkermes shuns Sarissa representation on the board *Source: Ironwood/Cyclerion Press Release; Biogen/Bioverativ Press Release Sarissa’s success at orchestrating company spin-offs has created tremendous shareholder value Sarissa led spin-off deals 65
Slide 71: How Alkermes spins oncology is important
How Alkermes spins oncology is important separation must be done to create shareholder value Source: Sarissa Press Release May 2018 71
Slide 72: Board hid that Sarissa urged earlier arbitration against JNJ
After success in its arbitration against JNJ, Alkermes board hid that Sarissa urged the company to enter arbitration sooner and not delay the receipt of funds ii Calculated as earnings before interest, taxation, depreciation, amortization and one-time items, includes share-based compensation expense
Slide 73: Multiyear engagement and desire for a settlement
Throughout our multiyear engagement, we have been patient and desired a settlement Alkermes email (May 3, 2023) 72
Slide 74: Sarissa made a significant concession but was rebuffed
With a desire to settle and avoid a proxy fight, Sarissa made a significant concession to link board representation to stock performance but was summarily rebuffed Despite a reasonable compromise and a significant concession on our part, Alkermes rejected our proposal to link Sarissa board represent
Slide 75: Board appears to have insufficient oversight of Pops
Board appears to have insufficient oversight of Pops Pops and not independent directors led NomGov discussions with Sarissa for years Pops reportedly soliciting votes during quiet period prior to filing proxy materials Board providing Pops’ lucrative compensation despite performance Alkermes’ cultur
Slide 76: Sarissa directors needed to run Alkermes for shareholders
Increasingly evident, Sarissa representative directors are needed to finally run Alkermes for shareholders Sarissa is uncertain why the board is so resistant to having direct shareholder representatives on the board of Alkermes We are your 3rd largest shareholder, and the largest non-index fund hold
Slide 77: Alkermes refuses to add a Sarissa representative
Alkermes refuses to add a Sarissa representative to the board 72 Sarissa mutually agreed with Pops for Alkermes to add Dr. Cato T. Laurencin (a non-Sarissa representative) to the board in 2021 as a good first step to providing fresh perspectives to the Alkermes’ board Sarissa believes that Dr. Laure
Slide 78: Sarissa is nominating three qualified individuals
Sarissa is nominating three qualified individuals who are dedicated to unlocking shareholder value at Alkermes Patrice Bonfiglio Alex Denner, Ph.D. Sarah Schlesinger, M.D. 72
Slide 79: Alex Denner, Ph.D.
Alex Denner, Ph.D. Work Experience Currently: Founding partner and Chief Investment Officer of Sarissa Capital Management LP Prior, include: Senior Managing Director at Icahn Capital Portfolio Manager at Viking Global Investors Healthcare portfolio manager at Morgan Stanley Investment Management Boa
Slide 80: Patrice Bonfiglio
Patrice Bonfiglio Work Experience Currently: President at Sarissa Capital Chief Operating Officer, Chief Financial Officer and Chief Compliance Officer of Sarissa Capital Prior, include: Head of Operations at Arbalet Capital Operations Manager at Arrowhawk Capital Senior Accountant at Ridgefield Cap
Slide 81: Sarah Schlesinger, M.D.
Sarah Schlesinger, M.D. Work Experience Currently: Associate Professor at Rockefeller University Senior Attending Physician at Rockefeller University Hospital • Prior, include: Scientist at Vaccine Research and Design International AIDS Vaccine Initiative Research Physician at Walter Reed Army Insti
Slide 82: Expected conflict of interest argument about Denner and Biogen
We expect the company to argue that Denner, as a director of Biogen, has a conflict of interest since Biogen is partnered with Alkermes for Vumerity… The Excuses Hat of Alkermes 72
Slide 83: Alkermes cleared conflicts for another Biogen director
…but Alkermes cleared conflicts for a Biogen director (not named Alex Denner) to join the Alkermes board Source: Email agreement between Alkermes management and Sarissa Alkermes email Alkermes email Biogen Director Biogen Director Candidate’s employer Candidate’s employer 72
Slide 84: Blocking Denner is a desire to keep Sarissa off the board
Blocking Denner from joining the Alkermes board is really a desire to keep Sarissa off the board, not because of purported conflicts of interests Sarissa and Alkermes agreed to a list of acceptable board candidates, which included a Biogen board member, to join in 2022 Biogen Board Member (not named
Slide 85: Speculation on what Alkermes fears from Sarissa
Without clear explanations why Alkermes will not accept our candidates, we can only speculate they fear the following: Sarissa will introduce oversight by shareholders Sarissa will show that the company’s business model is flawed The era of complacency with capital allocation will come to a close Sh
Slide 86: Do not re-elect Richard Pops
$60 $80 $120 $100 $40 $20 $0 7/16/1991 1/5/1997 6/28/2002 12/19/2007 6/10/2013 12/1/2018 $/Share DO NOT RE-ELECT RICHARD POPS Despite poor performance since 1991, one thing has been a constant: CEO Pops at the helm of Alkermes *Blank Dissolution of the Soviet Union 72 “The definition of insanity i
Slide 87: Do not re-elect Richard Gaynor
DO NOT RE-ELECT RICHARD GAYNOR a cancer specialist is no longer needed on the board as Alkermes refocuses on neuroscience Source: Alkermes Press Release The value of 18 years of experience in oncology-focused drug development (to use Alkermes’ words) is now irrelevant except perhaps with the oncol
Slide 88: Do not re-elect Shane Cooke
DO NOT RE-ELECT SHANE COOKE Alkermes needs a fresh perspective and not another long-term member of Alkermes’ management on its board Cooke filled his retirement from Alkermes with…more Alkermes. Shareholders don’t need more of the same at Alkermes as the company’s past performance has shown 88 Sour
Slide 89: Summary
Summary 88 Generating >$1 Bn in revenue for 5 years and still operating at a loss indicates a fundamental problem with the business model Alkermes continues to destroy shareholder value Substantial shareholder value can be unlocked if Alkermes were run for the benefit of shareholders Sarissa is nomi
Slide 90: Vote the BLUE universal card to upgrade Alkermes
BLUE VOTE THE UNIVERSAL CARD TO UPGRADE ALKERMES UPGRADEALKERMES.COM Vote before General Meeting of Alkermes shareholders scheduled for June 29, 2023. We urge all shareholders to vote today. 88 ONLY VOTE 1 CARD. DISCARD THE WHITE PROXY CARD Vote “FOR” the election of Sarissa Nominees Vote “AGAINST”
Slide 91: Shareholders can vote in one of three easy ways
Shareholders can vote in one of three easy ways: Voting by Internet – Visit www.cesvote.com. You will be prompted to provide the unique control number featured on your BLUE universal proxy card. Vote by Phone – Dial the toll-free number 1-888-693-8683. You will be prompted to provide the unique cont
Slide 92: Proxy card assistance contact
BLUE 88 If you have any questions regarding your proxy card or need assistance in executing your proxy card, please contact: D.F. King & Co., Inc. 48 Wall Street New York, New York 10005 Shareholders call toll-free: (866) 207-3648 Banks and Brokers call: (212) 493-6952 By Email: ALKS@dfking.com VOTE
Slide 93: Disclosures: General Considerations
Disclosures 88 GENERAL CONSIDERATIONS This presentation is for general information purposes only, is not complete and does not constitute an agreement, offer, a solicitation of an offer, or any advice or recommendation to enter into or conclude any transaction or confirmation thereof (whether on the
Slide 94: Disclosures: Not an Offer to Sell or Buy
Disclosures 88 NOT AN OFFER TO SELL OR BUY Under no circumstances is this presentation intended to be, nor should it be construed as, an offer to sell or a solicitation of an offer to buy any security. This presentation does not recommend the purchase or sale of any security and should not be constr
Slide 95: Disclosures: Intellectual Property and Additional Information
Disclosures 88 CONCERNING INTELLECTUAL PROPERTY All registered or unregistered service marks, trademarks and trade names referred to in this presentation are the property of their respective owners, and Sarissa’s use herein does not imply an affiliation with or endorsement by the owners of these ser