Alkermes mulling cancer spinout, giving neuro business path to profitability

A proposed separation of Alkermes’ oncology business into a new public company will offer investors optionality around a late-stage clinical asset and preclinical pipeline, while giving the biotech’s core neuroscience business a path to profitability as a stand-alone entity.

Among the factors driving the decision to explore a spinout is the Inflation Reduction Act “fundamentally shifting the relative economic value of biologic medicines of cancer,” Alkermes plc (NASDAQ:ALKS) Chairman and CEO Richard Pops said on the company’s 3Q22 earnings call early Wednesday...