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`Cephalon agrees to buy alcohol-treatment drug | Deseret News
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`DESERET NEWS
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`CHURCH NEWS
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`Cephalon agrees to buy alcohol-treatment
`drug
`Bloomberg News
`Published: June 25, 2005 12:00 am
`Cephalon Inc., maker of the sleep-disorder drug Provigil, agreed to pay as much as $490 million to Alkermes Inc. for the
`development and U.S. commercial rights to Vivitrex, an experimental treatment for alcohol dependence.
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`The deal calls for payment of $160 million in cash now and $110 million more when U.S. regulators approve Vivitrex for sale,
`Frazer, Penn.-based Cephalon said Friday. Alkermes may also get as much as $220 million by meeting certain sales targets.
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`Cephalon produces several products in Salt Lake City, including Actiq, a drug for relieving cancer pain.
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`Vivitrex is a once-a-month injection of naltrexone, a non-addictive agent that binds to opioid receptors in the brain and is
`believed to diminish the craving for alcohol, Cephalon said. The drug may receive U.S. marketing approval before the end of
`this year, and annual sales may reach $350 million, according to estimates by analysts at SG Cowen.
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`"This deal makes sense for both companies," New York-based Morgan Stanley analyst Marc Goodman said in a note to clients
`Friday. "For Alkermes, it now has a partner that is focused on the right doctors." Alkermes "is basically getting paid for Vivitrex
`during the unprofitable launch phase, and then receives 50 percent of the profits."
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`Shares of Cephalon fell 23 cents to close at $38.21 in Nasdaq Stock Market composite trading. Cambridge, Mass.-based
`Alkermes rose 11 cents to $13.21.
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`Cephalon will benefit as it gets a drug in the late stage of development, with a launch expected in early 2006, said Goodman,
`who rates Cephalon "underweight."
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`The U.S. Food and Drug Administration is expected to respond to Alkermes' request for clearance by Sept. 30. Alkermes will be
`responsible for getting Vivitrex approved and making it.
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`Cephalon will have the primary responsibility of marketing the medicine, with Alkermes contributing a specialized sales force.
`The companies are planning to introduce a consumer advertising campaign aer educating doctors about the drug, Cephalon
`Executive Vice President Robert Roche said on a call with analysts Friday.
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`Eighteen million people in the U.S. are dependent on or abuse alcohol and an estimated 2.3 million adults seek treatment each
`year, Cephalon said.
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`"The market is large and underserved," Cephalon Chief Executive Frank Baldino said on the call. "Alcohol dependence is one of
`the most prevalent mental health disorders, second only to depression. We believe Vivitrex will be an important source of
`future earnings for Cephalon."
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`While Alkermes won't update financial forecasts until it releases results for its first quarter ending June 30, the "agreement
`should have a favorable impact on our 2006 guidance," Alkermes CEO Richard Pops said on the call.
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`In May, Alkermes said it will have a fiscal 2006 net loss of $55 million to $65 million, or 60 cents to 71 cents a share, on sales of
`$110 million to $125 million.
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`https://www.deseretnews.com/article/600144016/Cephalon-agrees-to-buy-alcohol-treatment-drug.html
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`ALKERMES EXHIBIT 2051
`Amneal Pharmaceuticals LLC v. Alkermes Pharma Ireland Limited
`IPR2018-00943
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`Page 1 of 1
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