Discount offering nets $250m for Alkermes
Alkermes, the Ireland-based US drug company, has raised $250m (€183m) via a share offering in New York, with the proceeds earmarked for general corporate purposes.
The shares were sold to UK-based Invesco Perpetual at a 6.3pc discount to last Friday's closing price. It gives Invesco Perpetual a 4pc stake in Alkermes, which in 2011 acquired Elan's Athlone-based drug technology business. Elan has since been acquired by US drugmaker Perrigo.
After its acquisition of the Elan business, Alkermes moved its HQ to Ireland, helping it to cut its tax bill.
In the last year, its shareprice has doubled, giving it a market capitalisation of $6.4bn (€4.7bn). At the end of last September, Alkermes had just over $339m of cash and equivalents on its books.
Following the completion of the share sale, Alkermes will have five major institutional shareholders including Invesco Perpetual. The others include T Rowe Price, Blackrock, Fidelity, and Wellington Management. Between them, they control over 50pc of Alkermes stock.
Alkermes chief executive Richard Pops has said the share sale gives the company additional firepower to pursue acquisitions if it wishes.
He said the company needs to remain "action orientated" despite the upward trajectory of its shareprice.