Alkermes plc (NASDAQ: ALKS) has filed its paperwork with the Securities and Exchange Commission for the resale covering the potential future sales by a subsidiary of Elan Corporation, plc (NYSE: ELN). The filing covers up to 31,900,000 ordinary shares of Alkermes plc.
These shares are covered under an agreement between Alkermes and Elan related to the business combination of Elan’s drug technology unit and Alkermes. That deal was completed in September of 2011 and this effectively aims to end the lock-up period.
Elan will have the right to sell up to about 13 million shares in a public secondary offering after the lock-up expiration. Investors should know that Alkermes has the right to allow the sale of a greater number of shares by Elan, so an offering could be larger if Alkermes so decides that it will not hurt. The remaining shares will be eligible for sale on a delayed basis and any offering will be made “only by means of a prospectus and a related prospectus supplement.”
While this sounds like a lot of shares against the average volume of less than 600,000 Alkermes shares per day, this has not been kept secret and should have been easy to see coming. At $18.57, the 52-week trading range is $11.86 to $20.00.
JON C. OGG
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