Monday, December 1, 2008

Alkermes reclaims Vivitrol commercialization rights from Cephalon

By Mass High Tech Staff

Alkermes Inc., a Cambridge biotech, and Cephalon Inc., a Frazer, Pa.-based biopharmaceutical firm, have ended a collaboration agreement, returning all marketing and commercialization rights of alcohol anti-dependency medication Vivitrol back to Alkermes.

Vivitrol (naltrexone for extended-release injectable suspension), a once-monthly injectable medication for alcohol dependence, is indicated for alcohol-dependent patients who are able to abstain from drinking in an outpatient setting and are not actively drinking when initiating treatment. The treatment is also being developed as potential treatment for opioid dependence.

Alkermes (Nasdaq: ALKS) manufactures Vivitrol and has, until today, transferred marketing and commercialization efforts of the treatment to Cephalon. Under terms of the deal, Cephalon will pay for a year’s worth of losses from Vivitrol with an $11 million payment to Alkermes. Alkermes, in return, will buy equipment from Cephalon for $16 million. In the next 12 months, Alkermes will receive some financial support from Cephalon with partial commercialization funding of Vivitrol.

Cephalon officials cited “other opportunities” as a factor in its decision to relinquish commercialization rights.

Alkermes officials said the company plans to focus its commercialization efforts on increasing physician prescriptions, easing patient access to Vivitrol and assisting in the transition to the treatment.

In April 2006, the U.S. Food and Drug Administration approved Vivitrol for the treatment of alcohol dependence. Alkermes, at the time, received a $110 million milestone payment from Cephalon following the FDA approval.