Alkermes closes facility resulting in major job cuts

NEW YORK Alkermes has announced its decision to close its manufacturing facility in Chelsea, Mass., and cut 150 jobs as a result.

The company will be cutting 18 percent of its workers, effective this week, and will be offering severance pay, benefits and outplacement services to its workers, according to published reports. This will also result in a restructuring charge of about $5million to $10 million and a fourth-quarter impairment charge of about $15 million.

Eli Lilly’s decision to cancel the development of its AIR insulin program was the main factor in Alkermes closing of its facilities. Lilly and Alkermes were developing the diabetes drug jointly. Lilly’s explanation for its development cancellation was that the drug was not strong enough to compete with other products already on the market.