Alkermes Inc. of Cambridge, Mass., announced Tuesday that ithas completed its acquisition by merger of Enzytech, also ofCambridge, effective Feb. 12. The acquisition was announcedlast November.
Alkermes gains an array of drug delivery technologiesdeveloped by Enzytech that will complement Alkermes' ownsystems for delivering drugs to the brain as well as itsprograms under development for treating central nervoussystem disorders.
In conjunction with the transaction, Alkermes issuedapproximately 2.9 million shares of its common stock(NASDAQ:ALKS) -- which closed Friday at $9.50, making thedeal worth about $27.6 million -- for all outstanding shares ofEnzytech capital stock. This amount would equal 7,546,444common stock shares on an "as converted basis," explainedMichael Landine, Alkermes' chief financial officer.
Alkermes has also granted certain of Enzytech's employees andconsultants options to purchase 712,666 shares of Alkermescommon stock.
The combined companies will be based at Alkermes' currentfacility. There shouldn't be much restructuring as a result ofthe merger, according to Richard Pops, president and chiefexecutive officer of Alkermes. "There's no redundancy betweenthe two companies," he said. "With the infrastructuredeveloped at Alkermes we are able to contribute additionalmanagement, financial strength and clinical capabilitiesnecessary to advance product candidates through the FDAapproval process to ensure the further development ofEnzytech's promising technology."
-- Jennifer Van Brunt Senior Editor
(c) 1997 American Health Consultants. All rights reserved.