Alkermes Spinoff Notes

November 2, 2023 Update

Commentary from an October 26, 2023 conference call:

September 18, 2023 Update

Alkermes spin-off commentary from the Morgan Stanley HealthCare Conference in September 2023:

January 19, 2023 Update

Good Overview on the Alkermes Spinoff and Explanation on price fluctuations

November 9, 2022 Update

Alkermes PLC (ALKS) announced on November 2nd that it will be spinning off its development-stage oncology business, to create a pure-play commercial-stage neuroscience business.

One of the catalysts for the separation is that the oncology business has seen progress in the nemvaleukin development program. Nemvaleukin is now in two potential registrational studies, with the focus on two difficult-to-treat tumor types: platinum-resistant ovarian cancer and mucosal melanoma. In the spin, the RemainCo, expects to retain manufacturing and royalty revenues related to its licensed products using the company’s proprietary technologies under license.

As of now, they have said that the spin is expected to be completed in the second half of 2023.

I think this spin-off plan makes sense. It’s likely that Alkermes isn’t getting much credit for its oncology pipeline and spinning it off will force the market to recognize its value. I will continue to dig in to try to estimate how much value will be unlocked by the transaction.