Alkermes Sees Sales Growth After Merger With Elan Drug Tech

Drug maker Alkermes Inc. (ALKS) touted a new milestone for its key diabetes drug and issued new guidance for the revenue it expects to make after its merger with Ireland's Elan Drug Technologies.

The deal for the unit of Elan Corp. PLC (ELN, ELN.DB), announced in May, is expected to close during the third calendar quarter, subject to shareholder and regulatory approval.

Alkermes Chief Executive Richard Pops called the move "a significant inflection point in the transformation of Alkermes into a sustainably profitable biopharmaceutical company with growing revenues and margins."

On Monday, Alkermes said it expects adjusted revenue for the combined company to reach between $460 million and $480 million, driven by sales from five main products. The two companies generated about $450 million in revenue for the year ended March 31.

Sales of the company's Vivitrol drug rose 14% sequentially to $9.7 million in the first quarter, while the launch of its Bydureon diabetes drug in Europe will trigger a $7 million milestone payment expected in the fiscal second quarter.

Alkermes shares jumped earlier this month after results of testing requested by the U.S. Food and Drug Administration showed Bydureon didn't slow patients' heart rate. The drug is a joint project of Alkermes's with partners Amylin Pharmaceuticals Inc. (AMLN) and Eli Lilly & Co. (LLY)

Shares of Alkermes were off 1.7% to $18.94 recently. The stock is up 54% this year.

-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; [e-mail]