Alkermes recently-appointed directors issue open letter to shareholders

Seven of the recently-appointed independent directors of the Board of Directors of Alkermes issued an open letter to the Company’s shareholders in connection with the Company’s upcoming 2023 Annual General Meeting of Shareholders, which is scheduled to be held on June 29, 2023. “We are the seven newest directors of Alkermes, who have joined the Board of Directors since it commenced its refreshment efforts in 2019… As with all biopharmaceutical company boards, to achieve success we must navigate the many complexities and inherent risks in the business of drug development and commercialization, including those unique to the disease states in which Alkermes operates. To that end, we are actively engaged in all areas of the business, including the evaluation of strategic opportunities, R&D and commercial capital allocation decisions, corporate governance enhancements, cost structure oversight, and operational efficiency improvements… We and our fellow directors regularly engage in robust debate and difficult conversations, both amongst ourselves and with management, to ensure that we carefully consider all aspects of Alkermes’ strategic plan and implement changes that we believe best position the Company for long-term value creation…The results of our efforts to date are evident: Since we announced our Value Enhancement Plan, Alkermes’ share price has increased by 49%, and the Company has outperformed its peers by 61%, the XBI biotech index by 83% and the NBI biotech index by 56%… However, our work is far from done. We have strong momentum and continue to believe that Alkermes has great potential. We remain focused on the key strategic priorities that we believe will drive significant value for all shareholders, including: Driving the continued successful launch of LYBALVI, which is on track for 100% year-over-year growth in 2023; Advancing our development pipeline, including generating proof-of-concept data for our orexin 2 receptor agonist by year end; Separating the oncology business in a way that unlocks significant value for shareholders; and Achieving or exceeding the Company’s financial expectations and profitability targets by driving topline growth, rigorously managing expenses, and maximizing the significant operating leverage in our commercial infrastructure. …The Board has nominated seven director nominees for re-election to the Board at the Annual Meeting… In this context, we strongly disagree with the ISS recommendation that shareholders vote against Dr. Gaynor. Not electing Dr. Gaynor would be contrary to the best interests of shareholders, as it would cause us to lose key drug development and operational expertise important to the successful execution of our strategy.”