Alkermes regains US rights to alcohol drug
Alkermes Inc., a Cambridge biotechnolgy company, said today that it has regained from Cephalon Inc. full commercialization rights to Vivitrol, once-monthly, extended-release injectable medication for the treatment of alcohol dependence.
The collaboration between the two companies will end today, Alkermes said.
Alkermes said in a press release: "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. Further terms of the agreement were not disclosed."
To read the press release, please click here.
The press release included a statement from Frank Baldino Jr., chairman and chief executive of Cephalon, which, according to its website, is based in Pennsylvania.
"We have a lot of opportunities on our plate and cannot give Vivitrol the focus it deserves," Baldino said.
Following the termination of the collaboration, Alkermes said will continue to market Vivitrol in the United States.
Alkermes added that it expects gross sales of Vivitrol to remain in the range of $19 to $24 million.
Vivitrol is also being developed by Alkermes as a potential treatment for opioid dependence, the company said.
To read a Globe story about Vivitrol, please click here.
(By Chris Reidy, Globe staff)
It is no surprise Baldino decided to forgo further joint-promotion and development of Vivitrol with Alkermes. Observation suggests poor strategic planning in the marketing of this useful and important drug: lack of understanding customer mindset and needs resulted in providing insufficient tools for- and ill deployment of the sales force. The opportunity cost of an effective marketing strategy from the beginning (AKA "the focus it deserves") is a lesson for leadership on the importance of implementing a creative and conceptual business & marketing strategy unique to the drug.