Alkermes plc has agreed to sell its manufacturing facility in Gainesville and royalty revenue to to Meloxicam IV/IM to Recro Pharma, Inc. (Recro), a specialty pharmaceutical company, company officials announced in a press release this week.
The facility in Gainesville was acquired by Alkermes in 2011 as part of its business combination with Elan Drug Technologies.
Among the assets being sold include Alkermes’ rights to Zohydro ER and the late-stage, parenteral formulation of Meloxicam IV/IM, a nonsteroidal anti-inflammatory drug, which has completed multiple phase 2 trials for the management of moderate-to-severe acute pain, as well as related technology.
According to a press release, under the terms of the agreement, Alkermes will receive from Recro an initial cash payment of $50 million, development and commercialization milestone payments of up to $120 million related to Meloxicam IV/IM and low double-digit royalties on net sales of Meloxicam IV/IM.
Alkermes PLC said it is selling its Georgia manufacturing facility and global rights to its experimental pain treatment to Recro Pharma Inc., as the Irish specialty-pharmaceutical company seeks to focus on its pipeline of central-nervous-system treatments. Alkermes said it will receive a $50 million initial payment and up to $120 million in milestone payments.