Ireland-based biopharmaceutical company Alkermes PLC spun off its oncology business and is now a pure-play neuroscience specialty drug manufacturer. The reduction in costs related to the oncology business, the continuation of royalty payments from the Invega franchise, and growth in its priority products have enabled leverage to decline. As a result, we raised our issuer rating to 'BB' from 'BB-', and our issue-level rating on the term loan to 'BB+' from 'BB'. The recovery rating on the term loan remains '2', indicating our expectation of substantial (70%-90%; rounded estimate: 85%) recovery in the event of a payment default. The stable outlook reflects our expectation that the company will pursue acquisitions to augment its pipeline, but that leverage will remain below
