Alkermes says Eli Lilly to drop support for inhalable insulin

Cambridge biotech company Alkermes Inc. said today that it expects Eli Lilly and Co. to end their collaboration on developing an inhalable form of insulin for diabetes.

Alkermes said it expects Lilly to make a decision to discontinue the program next week and added that it is not aware of any safety, efficacy, or manufacturing issues that have arisen regarding the product, AIR Insulin, since Lilly's last public update on the program.

Pfizer Inc. and Novo Nordisk A/S of Denmark, recently scrapped work on similar products; Pfizer said too few patients preferred inhalable insulin to its injectable form.

Last month, Alkermes said fiscal third-quarter profit surged on a hefty gain from the sale of its stake in heart drug specialist Reliant Pharmaceuticals Inc.

Earnings were $168.9 million, or $1.63 per share, compared with a profit of $2.9 million, or 3 cents per share, in the year-ago period. Excluding the gain, the company said it earned 3 cents per share.

Analysts polled by Thomson Financial expected a loss of a penny per share.

Alkermes stock is down 60 cents, or 4.8 percent, in morning trading on the Nasdaq Stock Market.
(By Chris Reidy, Globe staff)