On November 2, 2022 Alkermes plc (Nasdaq: ALKS) reported approval by its Board of Directors (the Board) to explore separating its commercial-stage neuroscience business and development-stage oncology business (Press release, Alkermes, NOV 2, 2022, View Source [SID1234622820]). The company, together with the Board and external financial and legal advisors, plans to explore a separation of the oncology business into an independent, publicly-traded company (Oncology Co.) as part of an ongoing review of strategic alternatives for the oncology business.
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Alkermes believes separation of the oncology business into Oncology Co. would:
Drive a sharp strategic focus for each business;
Establish separate and distinct management teams with relevant therapeutic expertise based on each business’ unique strategic priorities and opportunities;
Simplify capital allocation decision-making and increase flexibility to pursue growth and investment strategies more directly aligned with each business’ respective goals; and
Enable the capital markets to better assess each business’ value, performance and potential, and attract a long-term shareholder base suited to each business.
"Alkermes will continue to build on our heritage of innovation and excellence in neuroscience. With a strong topline driven by the growth of our proprietary products, a specialized commercial infrastructure in neuropsychiatry and addiction, and proven drug development capabilities, the standalone neuroscience business represents a compelling opportunity to capture operating leverage, drive growth and profitability, and advance new potential medicines for neurological disorders," said Richard Pops, Chief Executive Officer of Alkermes. "With nemvaleukin now in two potential registrational studies, the oncology business has a compelling standalone investment thesis anchored by the potential medical and economic value of this potential first-in-class cancer therapy. We believe separating the oncology business at this time will best support and position nemvaleukin for success, create value for shareholders, and enable efficient advancement of our preclinical pipeline of engineered cytokines."