JOHNSON APPLAUDS ALKERMES’ EXPANSION
Clinton County Expansion Adds to Ohio’s Biotech Industry

FOR IMMEDIATE RELEASE
January 30, 2006

Columbus, OH -- Lt. Governor Bruce Johnson applauded an announcement today that Alkermes, Inc. is planning an expansion of its Clinton County pharmaceutical manufacturing facility. The announcement came following the approval of a Job Creation Tax Credit for the company and is contingent upon final approvals of the State’s complete incentive package.

“Alkermes’ expansion is great news for the citizens of Clinton County and a great indicator of Ohio’s strength in the biosciences,” said Johnson, who also serves as director of the Ohio Department of Development. “The State of Ohio is dedicated to expanding the bioscience industry and will work quickly to approve competitive incentives for Alkermes.”

Alkermes, Inc. is a pharmaceutical company that develops products based on sophisticated drug-delivery technologies. The company has commercial and candidate products including long-acting or extended-release injections for use in schizophrenia and alcohol dependence. Alkermes partners its proprietary technology systems and drug delivery expertise with pharmaceutical companies worldwide and also develops novel, proprietary drug candidates for its own account. The company's headquarters are in Cambridge, Massachusetts, and it operates research and manufacturing facilities in Massachusetts and Ohio.

"Alkermes is pleased to be expanding its manufacturing facility in Ohio," said Jim Frates, Chief Financial Officer of Alkermes. "The company's decision was driven by the recent tax reform and the excellent reception from Ohio, Clinton County and Wilmington. We have a long-term commitment in Ohio and look forward to bringing additional jobs into the region."

Today’s action by the Ohio Tax Credit Authority modifies an existing 10-year, 60 percent Job Creation Tax Credit originally issued in 2001. Under the new agreement, the value of the credit will be raised to 70 percent for the remainder of the original 10-year term for the creation of 275 new jobs. During the $76 million expansion, Alkermes will add 44,000 square feet to its existing 100,000 square-foot research and manufacturing facility in Union Township. Ohio is considering other incentives, including training grants and financing assistance.

“Since 2001, Alkermes has increased its Ohio operations from 57 to 275 employees, and within three years, that could grow to 550 employees,” said Johnson. “Prudent use of incentives has helped ensure that Alkermes stays right here in Ohio, and shows the world that when it comes to helping bioscience companies succeed, ‘Ohio Means Business’.”

The Alkermes announcement follows two other recent bioscience achievements in the Greater Cincinnati area. AtriCure, maker of soft tissue surgical devices, launched an IPO in August, issuing 4 million common shares with gross proceeds of $49.8 million. Then, in December, San Diego pharmaceutical company Amylin announced its first manufacturing facility would be located in West Chester.

According to Omeris, Ohio’s bioscience development organization, Ohio is home to nearly 600 bioscience-related companies, including nearly a dozen pharmaceutical manufacturers such as Procter & Gamble, Patheon, Roxane Laboratories, and Ben Venue Laboratories. Roxane and Ben Venue, both divisions of Boehringer Ingelheim, the world’s largest privately held pharmaceutical company, are in the midst of significant expansion. Research and clinical capabilities, both highly valued by growing biotech and pharmaceutical companies, are robust throughout Ohio. In FY2004, Ohio institutions earned $691.5 million in funding from the National Institutes of Health, tops in the Midwest. And for the past three years, U.S. News & World Report has honored more hospitals in Ohio as "America’s Best” than in any other state.