Alkermes expects 2009 profit on Eli Lilly payment

Cambridge biotechnology company Alkermes Inc. expects to report a fiscal 2009 profit, after receiving a $40 million payment from former AIR inhaled insulin partner Eli Lilly & Co.

The company now expects profit between 11 cents and 16 cents per share on revenue between $200 million and $225 million, up from prior guidance for a loss of 11 cents to 16 cents per share on revenue between $175 million and $200 million.

Analysts polled by Thomson Financial expect a loss of 10 cents per share on revenue of $194.9 million.

The company's 2009 fiscal year ends in March.

Eli Lilly canceled the AIR inhaled insulin program in February, citing regulatory and market uncertainties. Alkermes already received $14.5 million of the total $40 million in the fourth quarter of fiscal 2008. The remaining $25.5 million will be recognized as research and development revenue during the first quarter of fiscal 2009.

Shares of Alkermes jumped $1.05, or 8.6 percent, to $12.97 in morning trading on the Nasdaq Stock Market. The stock has traded between $10.32 and $18.78 over the last 52 weeks. (AP)