EX-99.3 9 alks-ex99_3.htm EX-99.3 EX-99.3

Exhibit 99.3

Alkermes plc

Unaudited Pro Forma Condensed Consolidated Financial Statements

 

On November 15, 2023, Alkermes plc (the “Company”) completed the previously announced separation (the “Separation”) of its oncology business into Mural Oncology plc (“Mural”), a new, independent, publicly-traded company whose ordinary shares will trade on the Nasdaq Global Market under the symbol “MURA”. The Separation was effected by means of a distribution of all the outstanding ordinary shares of Mural to the Company’s shareholders (the “Distribution”), in which each of the Company’s shareholders received one ordinary share, nominal value of $0.01 per share, of Mural for every ten ordinary shares, par value $0.01 per share, of the Company held by such shareholder at the close of business on November 6, 2023, the record date for the Distribution.

 

The following unaudited pro forma condensed consolidated financial statements are based on the Company’s historical consolidated financial statements and are presented to illustrate:

the estimated effects of the Separation;
in connection with the Separation, contribution of $275.0 million in cash from the Company and its subsidiaries to Mural;
upon the Separation, the release of a security deposit of $1.7 million related to a lease agreement associated with one of the Company’s leases for office and laboratory space that was assigned to Mural in connection with the Separation; and
for the twelve months subsequent to the Separation, estimated reimbursement of $2.6 million in expenses from Mural pursuant to a Transition Services Agreement executed in connection with the Separation between Mural and the Company.

 

The unaudited pro forma condensed consolidated statements of operations of the Company reflect the Company’s results of operations as if the Separation had occurred on January 1, 2020. The unaudited pro forma condensed consolidated balance sheet of the Company reflects the financial position as if the Separation had occurred on September 30, 2023. Beginning in the fourth quarter of 2023, the oncology business’ historical financial results for periods prior to the Separation will be reflected in the Company’s consolidated financial statements as discontinued operations.

 

The unaudited pro forma condensed consolidated financial statements and the accompanying notes should be read in conjunction with:

the audited consolidated financial statements and accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Form 10-K for the year ended December 31, 2022; and
the unaudited condensed consolidated financial statements and accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Form 10-Q for the quarter ended September 30, 2023.

 

The “Alkermes as Reported” column in the unaudited pro forma condensed consolidated financial statements reflects the Company’s historical financial statements for the periods presented and does not reflect any adjustments related to the Separation and related events.

 

The information in the “Discontinued Operations” column in the unaudited pro forma condensed consolidated balance sheet was derived from the Company’s consolidated financial statements and the related accounting records as of September 30, 2023, adjusted to include certain assets and liabilities that were transferred to Mural pursuant to the Separation. The information in the “Discontinued Operations” columns in the unaudited pro forma condensed consolidated statements of operations was derived from the Company’s consolidated financial statements and the related accounting records for the years ended December 31, 2022, 2021 and 2020 and the nine-month period ended September 30, 2023, and reflects the results of Mural’s business, adjusted to include costs directly attributable to Mural and to exclude certain corporate overhead costs that were previously allocated to Mural. The pro forma


 

adjustments also include transaction accounting adjustments that reflect the accounting for transactions in accordance with accounting principles generally accepted in the U.S. (commonly referred to as “GAAP”), including to reflect the cash contribution and the impact of the Separation on the Company’s valuation allowance.

 

The Company believes that the adjustments included within the “Discontinued Operations” column are consistent with the guidance for discontinued operations under GAAP. The Company’s current estimates on a discontinued operations basis are preliminary and could change as it finalizes discontinued operations accounting to be reported in the Company’s Annual Report on Form 10-K for the year ending December 31, 2023. The unaudited pro forma condensed consolidated financial data within the “Discontinued Operations” column does not purport to represent what Mural’s financial position and results of operations actually would have been had the Separation and the Distribution occurred on the dates indicated, or to project Mural’s financial performance for any future period following the Separation and the Distribution.

 

The unaudited pro forma financial information has been prepared by management in accordance with Article 11, Pro Forma Financial Information, under Regulation S-X of the Securities Exchange Act of 1934, as amended, and is for illustrative and informational purposes only. The pro forma financial information is based on various adjustments and assumptions and is not necessarily indicative of what the Company’s consolidated financial statements actually would have been had the Separation been completed as of the dates indicated or will be for any future periods. The pro forma condensed consolidated financial statements do not purport to project the future financial position or operating results of the Company following the completion of the Separation. The pro forma financial information does not include adjustments to reflect any potential synergies or dis-synergies that may result from the Separation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

Alkermes plc

 

Unaudited Pro Forma Condensed Consolidated Balance Sheet

 

As of September 30, 2023

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alkermes As Reported

 

 

Discontinued
Operations

 

 

Subtotal

 

 

Transaction
Accounting
Adjustments

 

 

Pro Forma

 

 

 

 

 

 

(A) (C)

 

 

 

 

 

(B) (C)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

647,711

 

 

$

 

 

$

647,711

 

 

$

(273,339

)

 

$

374,372

 

Receivables, net

 

 

337,697

 

 

 

 

 

 

337,697

 

 

 

 

 

 

337,697

 

Investments—short-term

 

 

241,439

 

 

 

 

 

 

241,439

 

 

 

 

 

 

241,439

 

Inventory

 

 

192,186

 

 

 

 

 

 

192,186

 

 

 

 

 

 

192,186

 

Contract assets

 

 

2,766

 

 

 

 

 

 

2,766

 

 

 

 

 

 

2,766

 

Prepaid expenses and other current assets

 

 

42,982

 

 

 

(2,344

)

 

 

40,638

 

 

 

17,028

 

 

 

57,666

 

Total current assets

 

 

1,464,781

 

 

 

(2,344

)

 

 

1,462,437

 

 

 

(256,311

)

 

 

1,206,126

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

 

327,517

 

 

 

(10,907

)

 

 

316,610

 

 

 

 

 

 

316,610

 

INVESTMENTS—LONG-TERM

 

 

106,431

 

 

 

 

 

 

106,431

 

 

 

 

 

 

106,431

 

RIGHT-OF-USE ASSETS

 

 

103,170

 

 

 

(14,027

)

 

 

89,143

 

 

 

 

 

 

89,143

 

INTANGIBLE ASSETS, NET

 

 

10,987

 

 

 

 

 

 

10,987

 

 

 

 

 

 

10,987

 

GOODWILL

 

 

92,873

 

 

 

(7,800

)

 

 

85,073

 

 

 

 

 

 

85,073

 

DEFERRED TAX ASSETS

 

 

162,184

 

 

 

(1,449

)

 

 

160,735

 

 

 

95,511

 

 

 

256,246

 

OTHER ASSETS

 

 

11,288

 

 

 

 

 

 

11,288

 

 

 

(1,661

)

 

 

9,627

 

TOTAL ASSETS

 

$

2,279,231

 

 

$

(36,527

)

 

$

2,242,704

 

 

$

(162,461

)

 

$

2,080,243

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

243,263

 

 

$

 

 

$

243,263

 

 

$

 

 

$

243,263

 

Accrued sales discounts, allowances and reserves

 

 

238,467

 

 

 

 

 

 

238,467

 

 

 

 

 

 

238,467

 

Operating lease liabilities—short-term

 

 

15,058

 

 

 

(5,788

)

 

 

9,270

 

 

 

 

 

 

9,270

 

Contract liabilities—short-term

 

 

3,319

 

 

 

 

 

 

3,319

 

 

 

 

 

 

3,319

 

Current portion of long-term debt

 

 

3,000

 

 

 

 

 

 

3,000

 

 

 

 

 

 

3,000

 

Total current liabilities

 

 

503,107

 

 

 

(5,788

)

 

 

497,319

 

 

 

 

 

 

497,319

 

LONG-TERM DEBT

 

 

288,366

 

 

 

 

 

 

288,366

 

 

 

 

 

 

288,366

 

OPERATING LEASE LIABILITIES—LONG-TERM

 

 

78,552

 

 

 

(9,207

)

 

 

69,345

 

 

 

 

 

 

69,345

 

OTHER LONG-TERM LIABILITIES

 

 

53,622

 

 

 

 

 

 

53,622

 

 

 

 

 

 

53,622

 

Total liabilities

 

 

923,648

 

 

 

(14,995

)

 

 

908,653

 

 

 

 

 

 

908,653

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares

 

 

1,722

 

 

 

 

 

 

1,722

 

 

 

 

 

 

1,722

 

Treasury shares

 

 

(186,942

)

 

 

 

 

 

(186,942

)

 

 

 

 

 

(186,942

)

Additional paid-in capital

 

 

3,003,184

 

 

 

(20,083

)

 

 

2,983,101

 

 

 

(275,000

)

 

 

2,708,101

 

Accumulated other comprehensive loss

 

 

(6,074

)

 

 

 

 

 

(6,074

)

 

 

 

 

 

(6,074

)

Accumulated deficit

 

 

(1,456,307

)

 

 

(1,449

)

 

 

(1,457,756

)

 

 

112,539

 

 

 

(1,345,217

)

Total shareholders’ equity

 

 

1,355,583

 

 

 

(21,532

)

 

 

1,334,051

 

 

 

(162,461

)

 

 

1,171,590

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

2,279,231

 

 

$

(36,527

)

 

$

2,242,704

 

 

$

(162,461

)

 

$

2,080,243

 

 

 


 

Alkermes plc

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

Nine Months Ended September 30, 2023

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alkermes As Reported

 

 

Discontinued
Operations

 

 

Subtotal

 

 

Transaction
Accounting
Adjustments

 

 

Pro Forma

 

 

 

 

 

 

(A) (D)

 

 

 

 

 

(D)

 

 

 

 

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales, net

 

$

678,026

 

 

$

 

 

$

678,026

 

 

$

 

 

$

678,026

 

Manufacturing and royalty revenues

 

 

607,888

 

 

 

 

 

 

607,888

 

 

 

 

 

 

607,888

 

Research and development revenue

 

 

16

 

 

 

 

 

 

16

 

 

 

 

 

 

16

 

Total revenues

 

 

1,285,930

 

 

 

 

 

 

1,285,930

 

 

 

 

 

 

1,285,930

 

EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods manufactured and sold (exclusive of amortization of acquired intangible assets shown below)

 

 

182,944

 

 

 

(33

)

 

 

182,911

 

 

 

 

 

 

182,911

 

Research and development

 

 

291,565

 

 

 

(94,692

)

 

 

196,873

 

 

 

 

 

 

196,873

 

Selling, general and administrative

 

 

549,181

 

 

 

(29,219

)

 

 

519,962

 

 

 

 

 

 

519,962

 

Amortization of acquired intangible assets

 

 

26,693

 

 

 

 

 

 

26,693

 

 

 

 

 

 

26,693

 

Total expenses

 

 

1,050,383

 

 

 

(123,944

)

 

 

926,439

 

 

 

 

 

 

926,439

 

OPERATING INCOME

 

 

235,547

 

 

 

123,944

 

 

 

359,491

 

 

 

 

 

 

359,491

 

OTHER INCOME, NET:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

21,105

 

 

 

 

 

 

21,105

 

 

 

 

 

 

21,105

 

Interest expense

 

 

(16,978

)

 

 

 

 

 

(16,978

)

 

 

 

 

 

(16,978

)

Other expense, net

 

 

(415

)

 

 

 

 

 

(415

)

 

 

 

 

 

(415

)

Total other income, net

 

 

3,712

 

 

 

 

 

 

3,712

 

 

 

 

 

 

3,712

 

INCOME BEFORE INCOME TAXES

 

 

239,259

 

 

 

123,944

 

 

 

363,203

 

 

 

 

 

 

363,203

 

INCOME TAX BENEFIT

 

 

(3,719

)

 

 

25,588

 

 

 

21,869

 

 

 

(112,752

)

 

 

(90,883

)

NET INCOME FROM CONTINUING OPERATIONS

 

$

242,978

 

 

$

98,356

 

 

$

341,334

 

 

$

112,752

 

 

$

454,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations - basic

 

$

1.46

 

 

 

 

 

 

 

 

 

 

 

$

2.74

 

Earnings per share from continuing operations - diluted

 

$

1.42

 

 

 

 

 

 

 

 

 

 

 

$

2.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of ordinary shares used in computing earnings per share - basic

 

 

165,996

 

 

 

 

 

 

 

 

 

 

 

 

165,996

 

Weighted-average number of ordinary shares used in computing earnings per share - diluted

 

 

170,981

 

 

 

 

 

 

 

 

 

 

 

 

170,981

 

 

 


 

Alkermes plc

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

Year Ended December 31, 2022

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alkermes As Reported

 

 

Discontinued
Operations

 

 

Subtotal

 

 

Transaction
Accounting
Adjustments

 

 

Pro Forma

 

 

 

 

 

 

(A) (D)

 

 

 

 

 

(B)

 

 

 

 

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales, net

 

$

777,552

 

 

$

 

 

$

777,552

 

 

$

 

 

$

777,552

 

Manufacturing and royalty revenues

 

 

331,983

 

 

 

 

 

 

331,983

 

 

 

 

 

 

331,983

 

License revenue

 

 

2,000

 

 

 

 

 

 

2,000

 

 

 

 

 

 

2,000

 

Research and development revenue

 

 

260

 

 

 

 

 

 

260

 

 

 

 

 

 

260

 

Total revenues

 

 

1,111,795

 

 

 

 

 

 

1,111,795

 

 

 

 

 

 

1,111,795

 

EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods manufactured and sold (exclusive of amortization of acquired intangible assets shown below)

 

 

218,108

 

 

 

(41

)

 

 

218,067

 

 

 

 

 

 

218,067

 

Research and development

 

 

393,842

 

 

 

(121,140

)

 

 

272,702

 

 

 

(2,293

)

 

 

270,409

 

Selling, general and administrative

 

 

605,747

 

 

 

(14,996

)

 

 

590,751

 

 

 

(258

)

 

 

590,494

 

Amortization of acquired intangible assets

 

 

36,363

 

 

 

 

 

 

36,363

 

 

 

 

 

 

36,363

 

Total expenses

 

 

1,254,060

 

 

 

(136,177

)

 

 

1,117,883

 

 

 

(2,551

)

 

 

1,115,332

 

OPERATING LOSS

 

 

(142,265

)

 

 

136,177

 

 

 

(6,088

)

 

 

2,551

 

 

 

(3,537

)

OTHER EXPENSE, NET:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

7,629

 

 

 

 

 

 

7,629

 

 

 

 

 

 

7,629

 

Interest expense

 

 

(13,040

)

 

 

 

 

 

(13,040

)

 

 

 

 

 

(13,040

)

Change in the fair value of contingent consideration

 

 

(21,750

)

 

 

 

 

 

(21,750

)

 

 

 

 

 

(21,750

)

Other income, net

 

 

2,122

 

 

 

 

 

 

2,122

 

 

 

 

 

 

2,122

 

Total other expense, net

 

 

(25,039

)

 

 

 

 

 

(25,039

)

 

 

 

 

 

(25,039

)

LOSS BEFORE INCOME TAXES

 

 

(167,304

)

 

 

136,177

 

 

 

(31,127

)

 

 

2,551

 

 

 

(28,577

)

INCOME TAX (BENEFIT) PROVISION

 

 

(9,037

)

 

 

11,061

 

 

 

2,024

 

 

 

 

 

 

2,024

 

NET LOSS FROM CONTINUING OPERATIONS

 

$

(158,267

)

 

$

125,116

 

 

$

(33,151

)

 

$

2,551

 

 

$

(30,601

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share from continuing operations - basic and diluted

 

$

(0.97

)

 

 

 

 

 

 

 

 

 

 

$

(0.19

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of ordinary shares used in computing loss per share - basic and diluted

 

 

163,741

 

 

 

 

 

 

 

 

 

 

 

 

163,741

 

 

 


 

Alkermes plc

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

Year Ended December 31, 2021

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alkermes As Reported

 

 

Discontinued
Operations

 

 

Subtotal

 

 

Transaction
Accounting
Adjustments

 

 

Pro Forma

 

 

 

 

 

 

(A) (D)

 

 

 

 

 

 

 

 

 

 

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales, net

 

$

627,424

 

 

$

 

 

$

627,424

 

 

$

 

 

$

627,424

 

Manufacturing and royalty revenues

 

 

541,807

 

 

 

 

 

 

541,807

 

 

 

 

 

 

541,807

 

License revenue

 

 

3,500

 

 

 

 

 

 

3,500

 

 

 

 

 

 

3,500

 

Research and development revenue

 

 

1,020

 

 

 

 

 

 

1,020

 

 

 

 

 

 

1,020

 

Total revenues

 

 

1,173,751

 

 

 

 

 

 

1,173,751

 

 

 

 

 

 

1,173,751

 

EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods manufactured and sold (exclusive of amortization of acquired intangible assets shown below)

 

 

197,387

 

 

 

(64

)

 

 

197,323

 

 

 

 

 

 

197,323

 

Research and development

 

 

406,526

 

 

 

(115,602

)

 

 

290,924

 

 

 

 

 

 

290,924

 

Selling, general and administrative

 

 

560,977

 

 

 

(11,367

)

 

 

549,610

 

 

 

 

 

 

549,610

 

Amortization of acquired intangible assets

 

 

38,148

 

 

 

 

 

 

38,148

 

 

 

 

 

 

38,148

 

Total expenses

 

 

1,203,037

 

 

 

(127,033

)

 

 

1,076,004

 

 

 

 

 

 

1,076,004

 

OPERATING (LOSS) INCOME

 

 

(29,287

)

 

 

127,033

 

 

 

97,746

 

 

 

 

 

 

97,746

 

OTHER EXPENSE, NET:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

2,408

 

 

 

 

 

 

2,408

 

 

 

 

 

 

2,408

 

Interest expense

 

 

(11,219

)

 

 

 

 

 

(11,219

)

 

 

 

 

 

(11,219

)

Change in the fair value of contingent consideration

 

 

(1,427

)

 

 

 

 

 

(1,427

)

 

 

 

 

 

(1,427

)

Other income, net

 

 

219

 

 

 

 

 

 

219

 

 

 

 

 

 

219

 

Total other expense, net

 

 

(10,019

)

 

 

 

 

 

(10,019

)

 

 

 

 

 

(10,019

)

(LOSS) INCOME BEFORE INCOME TAXES

 

 

(39,306

)

 

 

127,033

 

 

 

87,727

 

 

 

 

 

 

87,727

 

INCOME TAX PROVISION (BENEFIT)

 

 

8,863

 

 

 

2,463

 

 

 

11,326

 

 

 

 

 

 

11,326

 

NET (LOSS) INCOME FROM CONTINUING OPERATIONS

 

$

(48,169

)

 

$

124,570

 

 

$

76,401

 

 

$

 

 

$

76,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) earnings per share from continuing operations - basic

 

$

(0.30

)

 

 

 

 

 

 

 

 

 

 

$

0.47

 

(Loss) earnings per share from continuing operations - diluted

 

$

(0.30

)

 

 

 

 

 

 

 

 

 

 

$

0.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of ordinary shares used in computing (loss) earnings per share - basic

 

 

160,942

 

 

 

 

 

 

 

 

 

 

 

 

160,942

 

Weighted-average number of ordinary shares used in computing (loss) earnings per share - diluted

 

 

160,942

 

 

 

 

 

 

 

 

 

 

 

 

164,753

 

 

 


 

Alkermes plc

 

Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

Year Ended December 31, 2020

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alkermes As Reported

 

 

Discontinued
Operations

 

 

Subtotal

 

 

Transaction
Accounting
Adjustments

 

 

Pro Forma

 

 

 

 

 

 

(A) (D)

 

 

 

 

 

 

 

 

 

 

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales, net

 

$

551,760

 

 

$

 

 

$

551,760

 

 

$

 

 

$

551,760

 

Manufacturing and royalty revenues

 

 

484,000

 

 

 

 

 

 

484,000

 

 

 

 

 

 

484,000

 

License revenue

 

 

1,050

 

 

 

 

 

 

1,050

 

 

 

 

 

 

1,050

 

Research and development revenue

 

 

1,946

 

 

 

 

 

 

1,946

 

 

 

 

 

 

1,946

 

Total revenues

 

 

1,038,756

 

 

 

 

 

 

1,038,756

 

 

 

 

 

 

1,038,756

 

EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods manufactured and sold (exclusive of amortization of acquired intangible assets shown below)

 

 

178,316

 

 

 

(12

)

 

 

178,304

 

 

 

 

 

 

178,304

 

Research and development

 

 

394,588

 

 

 

(104,666

)

 

 

289,922

 

 

 

 

 

 

289,922

 

Selling, general and administrative

 

 

538,827

 

 

 

(10,916

)

 

 

527,911

 

 

 

 

 

 

527,910

 

Amortization of acquired intangible assets

 

 

39,452

 

 

 

 

 

 

39,452

 

 

 

 

 

 

39,452

 

Total expenses

 

 

1,151,183

 

 

 

(115,594

)

 

 

1,035,589

 

 

 

 

 

 

1,035,588

 

OPERATING (LOSS) INCOME

 

 

(112,427

)

 

 

115,594

 

 

 

3,167

 

 

 

 

 

 

3,168

 

OTHER INCOME, NET:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

6,960

 

 

 

 

 

 

6,960

 

 

 

 

 

 

6,960

 

Interest expense

 

 

(8,659

)

 

 

 

 

 

(8,659

)

 

 

 

 

 

(8,659

)

Change in the fair value of contingent consideration

 

 

3,945

 

 

 

 

 

 

3,945

 

 

 

 

 

 

3,945

 

Other income, net

 

 

13,644

 

 

 

 

 

 

13,644

 

 

 

 

 

 

13,644

 

Total other income, net

 

 

15,890

 

 

 

 

 

 

15,890

 

 

 

 

 

 

15,890

 

(LOSS) INCOME BEFORE INCOME TAXES

 

 

(96,537

)

 

 

115,594

 

 

 

19,057

 

 

 

 

 

 

19,057

 

INCOME TAX PROVISION

 

 

14,324

 

 

 

3,776

 

 

 

18,100

 

 

 

 

 

 

18,100

 

NET (LOSS) INCOME FROM CONTINUING OPERATIONS

 

$

(110,861

)

 

$

111,818

 

 

$

957

 

 

$

 

 

$

958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) earnings per share from continuing operations - basic and diluted

 

$

(0.70

)

 

 

 

 

 

 

 

 

 

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of ordinary shares used in computing (loss) earnings per share - basic

 

 

158,803

 

 

 

 

 

 

 

 

 

 

 

 

158,803

 

Weighted-average number of ordinary shares used in computing (loss) earnings per share - diluted

 

 

158,803

 

 

 

 

 

 

 

 

 

 

 

 

159,861

 

 

 

 

 


 

Alkermes plc

Notes to Unaudited Pro Forma Condensed Consolidated Financial Data

 

(A)
Reflects the discontinued operations of Mural, including the associated assets, liabilities, equity and results of operations, as well as (i) the preliminary estimated assigned goodwill to the discontinued operations based on the estimated relative fair values of the Company and Mural and (ii) the related transaction costs, primarily consisting of professional fees, that are directly related to the Separation.

 

(B)
Reflects the impact of the contribution of $275.0 million in cash from the Company and its subsidiaries to Mural in connection with the Separation, the release of a security deposit of $1.7 million related to a lease agreement associated with one of the Company’s leases for office and laboratory space that was assigned to Mural in connection with the Separation, and for the twelve months subsequent to the Separation, estimated reimbursement of $2.6 million in expenses from Mural pursuant to a Transition Services Agreement executed between Mural and the Company in connection with the Separation, all of which are directly related to the Separation.

 

(C)
Based on the assumption that the Separation took place on September 30, 2023, adjustments to the deferred tax assets as of September 30, 2023 represent the removal of net deferred tax assets relating to the oncology business and the release of approximately $129.3 million of the Company’s valuation allowance related to certain Irish tax loss carryforwards and other deferred tax assets due to the completion of the Separation and the Company’s higher profitability as described in footnote (D) below. The adjustment to prepaid expenses and other current assets relates to the recognition of the tax effects related to certain intercompany transactions (principally intercompany profit in inventory) that were eliminated in arriving at the Company’s consolidated income before tax but which would be recognized in connection with the Company’s release of its valuation allowance against certain Irish deferred tax assets.

 

(D)
Based on the assumption that the Separation took place on January 1, 2020, adjustments represent the income tax effect of the pro forma adjustments calculated using enacted statutory rates applicable at the legal entity in which the pro forma adjustments were made. The Company also re-evaluated its valuation allowance against deferred tax assets and concluded that it would have released approximately $129.3 million of its valuation allowance against certain Irish tax loss carryforwards and other deferred tax assets due to: (i) the impact of the Separation; (ii) the higher profitability of the Company through September 30, 2023 due to the May 2023 arbitration award which resulted in the resumption of royalties and payment of back royalties from Janssen Pharmaceutica N.V. related to sales of INVEGA SUSTENNA®, INVEGA TRINZA® and INVEGA HAFYERA®; and (iii) anticipated future profitability.

 

 

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