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Alkermes to sell Irish manufacturing facility to Novo Nordisk

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The facility in Athlone, Ireland, will give Novo Nordisk additional capacity to manufacture oral products.

Alkermes to sell Irish facility to Novo Nordisk

Alkermes has agreed to sell its pharmaceutical development and manufacturing facility in Athlone, Ireland to Novo Nordisk for $92.5 million.

 

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“The acquisition of the Athlone facility represents an expansion of Novo Nordisk’s global manufacturing setup and will provide Novo Nordisk with additional development and manufacturing capacity for current and future oral products,” commented Thilde G. Hummel Bøgebjerg, Senior Vice President, Product Supply Emerging Technologies, Novo Nordisk.

The deal also includes around 400 staff employed by Alkermes in drug development and manufacturing.

The transaction is expected to close in mid-2024.

Additionally, Alkermes and Novo Nordisk plan to agree subcontracting arrangements to continue certain work currently performed at the facility, potentially until the end of 2025. This is anticipated to be cost neutral to Alkermes over the subcontracting period. Alkermes will also retain royalties associated with products currently manufactured at the facility.

Alkermes will continue to manufacture its neuroscience products at its US facility in Wilmington, Ohio. The company also operates an R&D centre in Waltham, Massachusetts.

Novo Nordisk’s manufacturing expansion plans

The acquisition of the facility in Ireland follows several large investments from Novo Nordisk in its manufacturing capacity.

In November, the Danish firm announced an investment of €2.1 billion to expand its existing production site in Chartres, France.

It is also planning to invest over nearly €5 billion to expand its manufacturing facilities in Kalundborg, Denmark and another €2.1 billion to build a new 65,000m2 facility in Hillerød, Denmark.

“Our continued investments in our manufacturing sites across the globe demonstrate the belief we have in our current and future product portfolio and its relevance for people living with serious chronic diseases,” said Henrik Wulff, executive vice president, Product Supply, Quality and IT, 

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