Cephalon can not give Vivitrol the focus it deserves, according to CEO.
Alkermes regained full commercialization rights to Vivitrol® (naltrexone for extended-release injectable suspension) in the U.S. from Cephalon. The collaboration between the two companies will terminate effective today. Vivitrol is a long-acting treatment for alcohol dependence; it is also being developed by Alkermes as a potential treatment for opioid dependence.
Cephalon will pay Alkermes $11 million to cover its share of the estimated losses on Vivitrol for the next 12 months, and Alkermes will pay Cephalon $16 million to purchase manufacturing equipment for the product. Alkermes will recognize remaining milestone revenue and deferred revenue of approximately $120 million related to its previous agreements with Cephalon as net collaborative profit in the third quarter of fiscal 2009.
Under a joint commercialization agreement inked in June 2005, Cephalon had primary responsibility for the marketing and sales of Vivitrol, and Alkermes was responsible for manufacturing Vivitrol.
“We continue to believe in the potential for Vivitrol to help patients struggling with alcohol dependence and are working to increase sales,” stated David Broecker, CEO of Alkermes. “Overall, we are very pleased to have worked with Cephalon. The collaboration funded key market development initiatives for Vivitrol. In addition, over the next 12 months, Cephalon will partially fund our commercial activities, enabling Alkermes to dedicate resources we believe will result in increased Vivitrol sales.”
“We have a lot of opportunities on our plate and cannot give Vivitrol the focus it deserves,” said Frank Baldino Jr., Ph.D., chairman and CEO of Cephalon.