Alkermes Inc. takes hit for year following end of Eli Lilly and Co. deal

Alkermes Inc. lost money in its fiscal 2008 fourth quarter but made money for the year.

The quarterly loss stemmed in part from a collaborator's decision to pull out of a clinical trial and the subsequent closure of a Massachusetts plant.

But the overall gain came from one-time income generated by the sale of a stake in another company.

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The Cambridge, Mass. company (Nasdaq: ALKS) lost more than $18 million in the fiscal 2008 fourth quarter, ending March 31. For the year, however, Alkermes turned a nearly $167 million profit.

For the year, Alkermes generated $174.6 million in revenue from the sale of its stake in Reliant Pharmaceuticals Inc. Alkermes lost money at the end of its fiscal year, in part because of an $18.1 million charge related to the decision of Eli Lilly and Co. to end its partnership with Alkermes in development of an inhaled insulin drug.

Alkermes announced in March that it would eliminate 150 Massachusetts jobs and close its Chelsea, Mass. manufacturing facility because of the Lilly decision.

Alkermes continues to employ 235 people in Cambridge and about 400 at an Ohio manufacturing facility.

Alkermes issued guidance for its 2009 fiscal year indicating it expects to generate up to $200 million in revenue and lose between $10 million and $15 million during the fiscal year.

Alkermes makes Risperdal Consta, a treatment for schizophrenia. The company also produces Vivitrol, a drug to treat alcoholism.