Slide 1: Alkermes Presentation June 26, 2023
Alkermes Presentation June 26, 2023
Slide 2: Vote the BLUE Universal Card to Upgrade Alkermes
VOTE THE BLUE UNIVERSAL CARD TO UPGRADE ALKERMES 2 UPGRADEALKERMES.COM Vote before General Meeting of Alkermes shareholders scheduled for June 29, 2023. We urge all shareholders to vote today. ONLY VOTE 1 CARD. DISCARD THE WHITE PROXY CARD Vote “FOR” the election of Sarissa Nominees Vote “AGAINST” t
Slide 3: Under Richard Pops, Alkermes has underperformed and squandered shareholder capital for >30 years
Under Richard Pops, Alkermes has underperformed and squandered shareholder capital for >30 years Nasdaq Biotechnology Index (NBI) started 11/1/1993 Source: Bloomberg. Price performance from 11/1/1993 to 6/23/2023 Difference of +1,341% ALKS: +611.3% NBI: +1,952.7% -250% 250% 750% 1250% 1750% 2250% 27
Slide 4: Pops' empire building has squandered cash flows and made Alkermes a collection of subscale businesses
Pops’ empire building has squandered cash flows and made Alkermes into a collection of subscale businesses ROI: return on investment Billions of cheap free cash flows from royalties burned Bloated commercial infrastructure, subscale and competing against pharma giants Manufacturing not a core streng
Slide 5: Despite multiple years with revenues >$1Bn, the company continues to operate at a loss
$1,094 $1,171 $1,039 $1,174 $1,112 -$99 -$175 -$112 -$29 -$142 -$400 -$200 $0 $200 $400 $600 $1,000 $800 $1,200 $1,400 2018 2019 2020 2021 2022 $M Revenue Operating Loss Despite multiple years with revenues >$1Bn, the company continues to operate at a loss Alkermes Revenue vs Operating Loss Revenue
Slide 6: ISS recognizes that leadership lacks ability or desire to reduce spending relative to revenue
Independent proxy advisory firm ISS recognizes that “leadership lacks either the ability or the desire to reduce spending relative to revenue” “[T]he persistent negative return on investment at ALKS is unsustainable.” “The persistently low gross margin is the problem, not the change in recent quarte
Slide 7: ISS agrees Alkermes would benefit from direct shareholder representation on the board
ISS agrees that Alkermes would benefit from direct shareholder representation added to the board now Sarissa Capital “has made a compelling case that the prolonged inability of the incumbent leadership of Alkermes to transition to profitability warrants change in the boardroom.” “A dissident nominee
Slide 8: Sarissa has nominated three qualified director candidates
Sarissa has nominated three qualified director candidates Patrice Bonfiglio Alex Denner, Ph.D. Sarah Schlesinger, M.D. 8
Slide 9: ISS recognizes the positive contributions Dr. Schlesinger could bring to the Alkermes board
ISS recognizes the positive contributions to shareholders that Dr. Schlesinger could bring to the Alkermes board “In consideration of the dissident’s case for change and the nominees’ qualifications for the board, shareholders are advised to support Sarah Schlesinger on the dissident (BLUE) card…” I
Slide 10: ISS recommends shareholders withhold support from Richard Gaynor
In contrast, ISS recommends shareholders withhold support from cancer specialist Richard Gaynor Source: ISS Report (6/16/2023), Zailab “Gaynor appears to be the right choice to remove from the board to make room for Schlesinger because his removal would not result in a net loss of medical experience
Slide 11: ISS agrees that Gaynor, a cancer specialist, is no longer needed on the board
ISS agrees that Gaynor, a cancer specialist, is no longer needed on the board as Alkermes refocuses on neuroscience and spins out oncology in 2H23 Source: ISS Report (6/16/2023) “…with the pending spin of the oncology business, the value of Gaynor's drug approval experience will be reduced.”
Slide 12: Vote the BLUE Universal Card to Upgrade Alkermes
VOTE THE BLUE 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. 12 ONLY VOTE 1 CARD. DISCARD THE WHITE PROXY CARD Vote “FOR” the election of Sarissa Nominees Vote “AGAINST”
Slide 13: 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 14: Questions or assistance with your BLUE proxy card
If you have any questions regarding your BLUE proxy card or need 12 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 15: Disclosures: General Considerations
Disclosures 12 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 16: Disclosures: Not an Offer to Sell or Buy
Disclosures 12 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 17: Disclosures: Intellectual Property and Additional Information
Disclosures 12 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