Alkermes turns Eli Lilly payment into $40M stock repurchase bump

By Mass High Tech Staff

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The board of directors at Alkermes Inc. has approved a plan to expand the Cambridge-based company’s common stock repurchase program by an additional $40 million, officials report.

According to biotech firm Alkermes (Nasdaq: ALKS), the $40 million boost in the buyback plan comes after the company received a $40 million payment from Eli Lilly and Co. after the drug giant canceled its inhaled insulin program with Alkermes in March.

The original stock buyback program has Alkermes purchasing up to $175 million of the company’s common stock. To date, the company has repurchased 8 million shares of common stock for approximately $106 million, according to officials.

Following the cancellation of the Eli Lilly program, Alkermes laid off 150 workers and closed a plant in Chelsea that it had been in the process of expanding.

Alkermes reported net income of $9.5 million for 2007 on revenue of $239.97 million. The firm produces treatments for alcohol dependence and schizophrenia.

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