Ladies and gentlemen thank you for standing by. Welcome to the Alkermes conference call to discuss the company's third quarter financial fiscal 2010 financial results. My name is John and I’ll be your operator for today’s call. At this time, all participants are in a listen-only mode. There will be a question-and-answer session to follow. Please be advised this call is being recorded at Alkermes' request. At this time, I would like to introduce your host for today's call, Ms. Rebecca Peterson, Vice President of Corporate Communications at Alkermes. Please go ahead.

Thanks very much. Good afternoon and welcome to the Alkermes conference call to discuss our financial results for the third quarter of fiscal 2010, which ended on December 31st, 2009. With me this afternoon are Richard Pops, Chairman, President and CEO of Alkermes and Jim Frates, our CFO. Before we begin, let me remind you that during the call today, we will make forward-looking statements relating to among other things our expectations concerning the commercialization of RISPERDAL CONSTA, VIVITROL, and Exenatide once weekly, our future financial expectations and business performance, our expectations concerning future of business development transactions and our expectations concerning the therapeutic value and development of our product candidates. Listeners are cautioned that these statements are neither promises nor guarantees, but are subject to risks and uncertainties that could cause our actual results to differ materially from the results contemplated by the forward-looking statements. You can find a complete list and detailed description of these and other risks in our Annual Report on Form 10-K, our quarterly report on Form 10-Q, which was filed this afternoon as well as the other periodic reports filed with the SEC under the Securities and Exchange Act of 1934 as amended. We undertake no obligation to update or revise the information provided in this call. This afternoon, Jim Frates will discuss our third quarter financial results and Richard Pops will provide an update on the company. After our remarks, we will open up the call for Q&A. Now, I’d like to turn over the call to Jim.

Thanks, Rebecca. Good afternoon, everyone. Overall, this has been a strong quarter from a financial point of view. Both RISPERDAL CONSTA and VIVITROL achieved record quarterly sales. On a revenue basis, RISPERDAL CONSTA, the primary engine of revenue growth here at Alkermes, continued to perform very well growing operationally at over 18% year-over-year. In addition, we’re making progress toward our goal of reaching operational breakeven for VIVITROL in the alcohol dependence indication with 17% sequential growth in net sales. During the quarter, our strong revenue performance coupled with our expense management allowed us to record a small pro forma net income and generate $6.4 million of cash from operations, finishing the quarter with approximately $358 million in cash. As Rich will discuss further, our strategy is to make disciplined investments in our pipeline with the cash flow we generate to lay the ground work for the next stage of our growth. To provide more detail on this quarter’s financials, total revenues were $44.2 million attributable to strong manufacturing revenues and record royalty revenues from RISPERDAL CONSTA based on roughly $400 million in end market sales. As J&J stated on its recent quarterly earnings call “RISPERDAL CONSTA achieved fourth quarter sales growth of 18.1% on an operational basis. U.S. sales growth was 13.7% with increased script share and market growth contributing to the results. Sales outside the United States were up 20.6% operationally with double digit growth in all the major regions and a launch earlier this year of RISPERDAL CONSTA in Japan.” These strong revenue results from RISPERDAL CONSTA were notable as they occurred during the first full quarter that Johnson & Johnson was promoting both RISPERDAL CONSTA and their long acting form is INVEGA demonstrating an additional promotional activity in the market place may in fact serve to grow…

Thank you, Jim. Good afternoon, everybody. So we had a good quarter and what shaping up to be a very good year for Alkermes. We expect 2010 to be a transformative year for the company and we entered the year with momentum. We are in a newer position of having two promising late stage products that could receive FDA approval this year, we have a solid foundation of revenues from first-in-class products and financial strengths and we have a promising pipeline of new medicine becoming increasingly visible to you and to potential pharmaceutical company partners. During the last quarterly conference call in November, we outlined our plan to accelerate the development of our own portfolio to reinvigorate the company’s scientific initiatives and expand the scope of our business. Since that call in November, we’ve been focused on executing our plans and we’ve already made significant progress. I see the company at a point of shifting into a higher year. We’ve got more going on, more late-stage programs, more mid-stage programs, more regulatory interactions, more science and more business development discussions. This is an exciting time and an exciting place. So here are some of the key highlights to focus on. Let’s start with the major near term driver for Alkermes, mainly Exenatide Once Weekly or EQW, since we are quickly approaching the March 5th PDUFA date. Just last week, even though it seems like a month ago, the FDA approved Victoza, a once-daily injection GLP-1 analog for the treatment of type 2 diabetes. This is big news and we believe positive news for those of us developing therapies in this class and for patients with type 2 diabetes. We think the launch of Victoza into the U.S. market is a good thing for a couple of reasons. First and perhaps…

Thanks, Richard. Operator, we'll now open it up for the Q&A.

(Operator Instructions). Our first question comes from Cory Kasimov from JPMorgan.

Great thanks. Let me start off with today's news or what came out this morning. And I guess two questions on this. First of all, can you talk about the IP around ABILIFY, at least what you know of it and then also assuming nothing on expected jumps up, as this starts to progress through the clinic. Can you discuss a little bit of what the development plan may look like, is there something that go straight from Phase I and II of pivotal Phase III program?

Sure, The IP around ABILIFY is interesting. One of the things we learnt from RISPERDAL CONSTA is that if you look at the sales of RISPERDAL CONSTA $1.4 million or so, two thirds of it comes from outside the US. So the first important point is that the IP strategy is a global IP strategy. So I won’t be able to answer it and I won't answer it in granular detail on the call. But we viewed on a global basis number one, number two the IP is fluid in these various jurisdictions and number three is important to point out that our molecules are new molecular entities and separately countable on their own. So we don't expect that there are still patents to be impediment to our launching of product. Second one on the development plan, similar to answers I’ve given you before on this where given the nature of these development programs, the real important study is that first study where we determined the PK profile. If the PK profile is within plasma concentrations that are relevant to previous studies of the drugs, we have probably a more accelerated route that if we are forging new ground scientifically. So we’ll move as fast as we can to get the dosage form into its first human study to see for (inaudible) what we see in the animals and when we have that data in hand, we’ll guide you to how we’re going to go from there.

And then regarding VIVITROL, now you have the positive Phase III data and opioid addictions. Any insight that you can share with us post that from your interactions with KOLs or potential market research you might have conducted in the intervening time period?

Much of that is ongoing as you may know and we’re actually, will be getting data over the next several weeks from our (inaudible) agent, the more formal market research. That said, one of most interesting things since we priced last was really just looking and where the Suboxone number ended the calendar 2009, our number was around $840 million. But that does two things, number one it kind of quantities just with one data point a market opportunity. But number two, the more people that are on Suboxone that means the more people that are in treatment with pharmaceutical products and also the more people who are being treated with agonists, which increases the demand for anti-agonists, because the more and more to agonists, the realize the benefit of them, but also with the limitations of them. So this is just a generalized awareness of opioid treatment building in the community. You may have seen that here in Massachusetts it’s all the sudden over the last there or four months becoming a critical and economic story because the cost of treating in opioid dependants in the common wealth getting to be so excessive. So part of that is because more and more payors are paying more and more money for Suboxone as well as Methadone. So there is an increasing interest in the use of anti-agonist. But I can go on forever that what I’ll do is we’ll wait till we get some of the more quantitative market research in the segmentation information and we’ll share that with you.

Our next question comes from Steve Yoo from Leerink Swann.

Just a couple of questions. One is the cost of goods for VIVITROL, right now I understand because it’s not selling that much it’s kind of variable, so where do you expect it in a normalized that one you hit several hundred million dollars worth the sales or $100 million plus in sales?

Hi, Steve. So actually the last few quarters we’ve actually been doing better on VIVITROL production and our margins, our gross margins now are in same 70% to 80% range that RISPERDAL CONSTA has been. And you pointed it out the more VIVITROL we make the more likely we are to have those consistent margins. But we think it will be near RISPERDAL CONSTA going forward.

Okay. And let’s see on bigger level of question. You have a lot of cash and you are using money to get some R&D programs up and running, as far as future deals, are you thinking more along the lines of Acceleron like deals early stage or it’s in later stage. How do you envision cash use going forward?

We’re not planning on any large deals right now, we never see anything, but right now the internal pipeline is so rich. We’ve got enough, this is evidenced by today with the LinkeRx tech that we’re talking about. We’re interested in kind of selective acquisitions to build on a product-by-product basis overall I’m looking at anything seismic for the company. The other thing it’s important to point is that the more we build the technology platform and more we put more product into development the more opportunities we have with partner and generate revenue with pharma. Because we’re not depended upon their capital or anybodies capital at this point we can advance these things as far as we need to advance on our own with that being depended not everybody, but it gives us an opportunity always to be question in the opportunity for business development in along way.

Our next question comes from Dave Windley from Jefferies & Company. Dave Windley - Jefferies & Company: Hi, thanks good afternoon. Jim, would you be willing to comment on the VIVITROL sales from the J&J Russia partnership for licensing?

Sure, Dave, I mean I won’t break them out specifically, but they’re really de minimis compared to, so they don’t come in the VIVITROL revenue line really at all at this stage. Dave Windley - Jefferies & Company: Okay, the ALKS 60, couple of five points question, ALKS 6931, what would you anticipate targeting as a dosing frequency and if it’s too early to given an answer along those lines maybe answer what do you think the minimum dose or the minimum duration between doses would need to be to make it a viable commercial candidates?

Go again our objective is once a month. And I think you could argue for once every two weeks, but we’re going to go for once a month. Dave Windley - Jefferies & Company: Okay, and on EQW and thinking about that versus Victoza Novo had some comments about their own views of the comparison, don’t know if you got a chance to hear those or read the transcripts, but I wondered if you might offer your views on the comparison between the two?

I didn’t look at their transcripts. So I don’t know exactly what the comparisons would be, but the comparisons that will probably most interested about the once that have been publish in major scientific for in the form of durations studies we show compared data to other diabetes medications. So the advantages of self having once a week dosing with unsurpassed glucose control weight loss, well tolerated and potential cardiovascular benefit that’s all surely obvious at this point, but the most important thing for us now is to get approved and I think we’ll do just fine in the marketplace. Dave Windley - Jefferies & Company: Richard, last question from me, as you’re building as you said your pipeline is getting richer and you’re building more opportunities, would you anticipate continuing to effectively keep your foot on the accelerator across the waterfront of programs here or are you going to prioritize, I guess it's basically an R&D spending question. Do you have a tolerance or an appetite to keep ramping the R&D spending number as programs warrant that or are you going to kind of keep a cap on that vis-à-vis revenue?

A Little of both, because with the face when we put things in the clinic they’re not particularly expensive in order to get the key go no go or even human proof of concept results. So take 9070 or human PK study where the discount rate we put against that program will drop dramatically if we sell the PK profile that we wanted long before we initiated a complex Phase III program, we’ve an accelerated the Phase III program. So the answer is we’re going to [hammer] those many things into man to proof-of-concept this year and next year and as we start then modeling out what the later stage programs are going to look like, we’re going to have the ability to partner and we’re going to have the ability to see how EQW is doing and make that determination real plan. The top of the funnel is to most important right now and most companies the top of the funnel for them is earlier stage discovery step, for us the top of the funnel our products that are really almost ready for clinic and given the nature of the drugs we develop, we can learn very, very quickly in the clinic rather these things we’re doing what we expected to do.

Our next question comes from the Thomas Russo from Baird.

I wanted to revisit the LinkeRx update today as well and maybe just to push a little further, I heard new molecular entity and things of that nature. Could you be specific, is your understanding that this would qualify in FDA eyes as a new chemical entity for 5.5 years of exclusivity and also for a true composition of matter and I’m kind of thinking back to new reverse platform technology, I’m wondering if there is any analogy between that and what you’re looking at doing?

Well, I think the answer is yes to both those questions, about whether to be deemed and a need from FDA's point of view and also certainly in terms of IP. So it actually one of the things that we thought to do was leverage some of the pharmacology associated with the known atypical but embodied in a new molecular entity that was separately patentable.

Okay. I wanted to also just ask the VIVITROL opportunity in opioid addiction, hearing a proxy that $840 million is potential for another drug in the category and also that there’s currently no plans to increase the sales force. Could you comment maybe at what point you might consider that or what you would need to see in order to consider putting a bigger SG&A effort behind that opportunity.

Well, I think just to be clear when I say to 840, I want to make sure the people don’t think that I’m saying the VIVITROL would be $840 million, I don’t know yet. The point I was making is that there is $840 million of doctors and patients and payors involved in the commerce associated between these, which is so different than what we went to at alcohol. So VIVITROL is a very different product, because its injectable product, it’s priced differently and it will appeal to a different footprint of patients and doctors and Suboxone as an antagonist versus an agonist. That’s it to answer to your question, what’s remarkable about the sales of Suboxone is that about 2000 doctors are doing about 80% to 90% of all that business. So it’s not a solid specialty or indication that requires large mere national footprint to go after. But that’s precisely the work that we’re doing right now, because we can identify those Suboxone docs, its attractable number and it maps well against the kind of specialty and capability that we have we’re doing that work now.

Okay, and then one last question, obviously J&J put up a big number for CONSTA this quarter and I know on your last call we talked a little bit about the supply chain changes and as your guidance update at that time, can you give us a sense from your view point was the December quarter reflective of underlying demand and is the supply chain kind of unlikely to result in any disconnects going forward?

Well, Tom its Jim. I’ll tell you what we know, which is what we quoted from Johnson & Johnson and they talked about increased prescription share in the United States as well as a growing market. And I think that’s very, very important for us because related to an earlier question as we consider how we’re going to spend on R&D, if RISPERDAL CONSTA is continuing to grow at a double digit phase here for the next two years. That’s obviously a very, very important aspect for us. So I think it remains early in this phase of RISPERDAL CONSTA now with other products on the market we’ve been in the market now that’s been in the market for four months, but clearly the growth that we saw in the United States is really the best quarter ever for CONSTA. It’s a great way to start from our perspective?

Our next question comes from Ian Sanderson from Cowen & Company. Ian Sanderson - Cowen & Company: Actually a couple of financial ones for Jim first, where were most of the relocation cost booked, either in R&D or SG&A just trying to get a kind of a representative numbers here?

Yeah, mostly in R&D, Ian. Ian Sanderson - Cowen & Company: Okay. And then was the $2 million up from payment to Acceleron expensed in the quarter?

Yeah, it was, it’s detailed in the press release and it was actually $2 million booked upfront and then we had $100,000 of R&D essentially in December. So its $2.1 million of cost associated with the Acceleron. Ian Sanderson - Cowen & Company: Okay. And then so the polymer manufacturing revenues for Exenatide Once Weekly, is that something that's going to be a steady revenue number looking forward, are you always going to be booking polymer manufacturing revenues?

Well, it’s little too early to know right now what their launch quantities are going to be, so I think before the drugs approved it’s probably too early to speculate on exactly what the future is going to hold. But where there are exclusive polymer manufacture here for the time being and so as the drug launches you will see some polymer manufacturing revenue consistently come in if sales are growing. Ian Sanderson - Cowen & Company: Any like, very rough indication of what percent of the end market sales value would be?

Well, if I knew what the sales for Exenatide Once Weekly are going to be next year, I’d certainly be willing to put a stake in a ground, but we’ll give you a much better look forward on that when we update for our fiscal year ’11 guidance in May. Ian Sanderson - Cowen & Company: Okay. And then finally on VIVITROL follow up on an earlier question, you mentioned in your prepared remarks that you're making progress towards breakeven on VIVITROL, but presumably, six months from April you may go into an investment fees there again would that be the proper way to look at this?

Well, I think it's been very much a goal of ours as that we get the alcohol dependence indication breakeven and we’re making very good progress towards that and hopefully we will break over in to breakeven in fiscal 2011 for alcohol dependence. As Rich said, we’re going to make an investment in the launch of opioids, the opioid indication. We think it will be a reasonable one on a contain one, the real backbone of that is going to be the current sales force that we have, the infrastructure that we built to deliver the especially product after we get the product back from Cephalon is built, we’ll use that same infrastructure. So again we’ll give you a lot more of an indication once we get the NDA in, once we finish the work most likely at our quarterly or yearly update in May. But we will invest in launching this product, we think it wants it, at the same time, it will be a controlled investment. Ian Sanderson - Cowen & Company: Okay. And just the curiosity, can you apply for reimbursement at the same time you file or you have to wait for the label on this particular product. And opioid dependence before you can apply for reimburse. Just wondering if you have had start because it's already on the market for different indications.

So Ian you can have discussions with payers about the product profile, but you can file for safer reimbursement in advance approval. Operator I think we have time for one more question.

Our next question comes from John (Inaudible) from Appleton.

Two quick question one on the new technology you guys were using to develop drugs. Is that something where you could go after drugs may be right when they launch or even maybe late stage drugs in other people’s pipelines where there is less competition? And then the second question is, the guidance you gave earlier in the year on line items should be still use that as kind of way you’re going to be in the next quarter?

John we haven’t updated our guidance, so absolutely impact we updated in our last quarterly conference call so that is the first place to go the call we had in November. And we still like will be in those ranges that we outline.

And I’ll take the first part. The answer is really dependent upon the nature of the underlining pattern for the original molecule. So in some cases you’ve actually seen drugs come to market with fairly short IP life really data exclusivity only the protection. And as I said R is our new molecular entities that leverage, but they’ve done before. But in many cases we don’t think the underlying patterns will be impediment to our making drug.

Thanks everyone for joining into me and is there any subsequent questions certainly don’t hesitate to call either Jim Frates or myself. Have a good evening

Thank you ladies and gentlemen this concludes today’s conference. Thank you for participating. You may now disconnect.