Slide 1: Alkermes plc: Products, Profitability and Growth
Alkermes plc: Products, Profitability and Growth May 9, 2011 COPYRIGHT (c) 2011 ALKERMES, INC.
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: Agenda
Agenda Richard Pops: Strategic Rationale and Business Opportunity Shane Cooke: EDT Snapshot James Frates: Financial Aspects of the Transaction Q&A
Slide 5: Alkermes and EDT: A Transformational Transaction
Alkermes and EDT: A Transformational Transaction Immediate profitability on a cash earnings basis and expanding Adjusted EBITDA margins Accretive transaction Growing revenues in excess of $450 million annually Driven by five major commercial products with long patent lives Incorporated in Ireland Ac
Slide 6: Commercial products and royalty rates
AMPYRA(r) (18% manufacturing and royalty rate) Treatment to improve walking in patients with multiple sclerosis (MS) Launched in U.S. in 2010, MAA filed in Europe Patent life into 2026 VIVITROL(r) (Proprietary product) Once-monthly injectable medication for alcohol and opioid dependence Ramping laun
Slide 7: Combined Pipeline: CNS Focus
Schizophrenia ALKS 9070 RISPERDAL(r) CONSTA(r) INVEGA (r) SUSTENNA(r) Depression ALKS 33/BUP Reward Disorders ALKS 33 (binge eating) ALKS 33 (alcohol dependence) ALKS 33/BUP (cocaine addiction) VIVITROL(r) Pain Meloxicam IV ZX002 ALKS 36 OIC ALKS 37 MS AMPYRA(r) Combined Pipeline: CNS Focus
Slide 8: Shane Cooke, Head of EDT
Alkermes Shane Cooke, Head of EDT
Slide 9: Strong Strategic Fit at the Right Time
Strong Strategic Fit at the Right Time EDT positioned for growth; AMPYRA(r) and INVEGA(r) SUSTENNA(r) at beginning of their growth trajectories Complementary world-class drug formulation and manufacturing expertise CNS focused product portfolios Royalties from long-acting atypical antipsychotics now
Slide 10: EDT: Established Model for Profitability
EDT: Established Model for Profitability 40-year history with >35 approved drugs Commercial portfolio of 22 marketed drugs NanoCrystal(r) and Oral Controlled Release technologies Track record of innovation: AMPYRA(r), AVINZA(r), NAPRELAN(r) and VERELAN(r) Diversified revenue streams Royalties on com
Slide 11: Deep Product Portfolio with Diversified Revenue Streams
Deep Product Portfolio with Diversified Revenue Streams Products Mfg Rev Royalties Avinza(r) ? ? Luvox(r) CR ? ? Diltiazem(r) ? - Naprelan(r) ? - Rapamune(r) ? - Ritalin(r) LA / Focalin(r) XR ? ? Verelan(r) ? ? Zanaflex(r) Capsules ? ? Emend(r) ? ? Megace(r) ES - ? Skelaxin(r) - ? Tricor(r) 145 - ?
Slide 12: James Frates, CFO of Alkermes
James Frates, CFO of Alkermes
Slide 13: 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 Synergies ~$20 million synergie
Slide 14: Alkermes plc: Financial Strength
Alkermes plc: Financial Strength Trailing 12 months as of March 31, 2011 Pro forma revenues ~$450 million Pro forma Adjusted EBITDA ~$80 million Pro forma revenues Double-digit growth rates in FY'13 and beyond Pro forma Adjusted EBITDA margins Expected to be in range of 15-20% in FY'12 Expand to 30-
Slide 15: Meaningful Increase in Revenues & Profitability
($MM) Alkermes, Inc. Standalone Alkermes plc Pro Forma ($MM) Alkermes plc Pro Forma Alkermes, Inc. Standalone Meaningful Increase in Revenues & Profitability
Slide 16: Alkermes plc: Diversified Revenue Base
Alkermes plc: Diversified Revenue Base (based on CY '10) (based on CY '10) (based on CY '10) (CHART) BYDUREON(tm) VIVITROL(r) RISPERDAL(r) CONSTA(r) MEGACE(r) SKELAXIN(r) Other TRICOR(r) LUVOX(r) ZANAFLEX(r) RAPAMUNE(r) DILTIAZAM(r) NAPRELAN(r) AVINZA(r) FOCALIN(r)/ RITALIN(r) VERELAN(r) AMPYRA(r) I
Slide 17: Richard Pops, CEO of Alkermes
Richard Pops, CEO of Alkermes
Slide 18: Alkermes and EDT: A Transformational Transaction
Alkermes and EDT: A Transformational Transaction Immediate profitability on a cash earnings basis and expanding Adjusted EBITDA margins Accretive transaction Growing revenues in excess of $450 million annually Driven by five major commercial products with long patent lives Incorporated in Ireland Ac
Slide 19: www.alkermes.com
www.alkermes.com COPYRIGHT (c) 2011 ALKERMES, INC.