##### Table of Contents



UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
  Form 10-Q
   (Mark One)þ

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended
    September 30, 2006o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          
    to   Commission file number 1-14131
  ALKERMES, INC.
 (Exact name of registrant as
    specified in its charter)
   PENNSYLVANIA

23-2472830(State or other jurisdiction
    of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)88 Sidney Street, Cambridge,
    MA(Address of principal
    executive offices)

02139-4234(Zip
    Code)   Registrants telephone number including area code:
 (617) 494-0171
  (Former name, former address,
    and former fiscal year, if changed since last report)
   þ o
  Rule 12b-2
 þ o o
  Rule 12b-2 o þ
    As of November 2,Class

2006Common Stock, $.01 par value


100,472,626Non-Voting Common Stock,
    $.01 par value


382,632




---



##### 



ALKERMES,
    INC. AND SUBSIDIARIES
  INDEX
  Page No.PART I 
    FINANCIAL INFORMATIONItem 1.


Condensed
    Consolidated Financial Statements:Condensed
    Consolidated Balance Sheets  September 30, 2006
    and March 31, 2006


3Condensed
    Consolidated Statements of Operations  For the Three
    and Six Months Ended September 30, 2006 and 2005


4Condensed
    Consolidated Statements of Cash Flows  For the Six
    Months Ended September 30, 2006 and 2005


5Notes to Condensed
    Consolidated Financial Statements


6Item 2.


Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations


18Item 3.


Quantitative and
    Qualitative Disclosures about Market Risk


29Item 4.


Controls and
    Procedures


30PART II 
    OTHER INFORMATIONItem 1.


Legal
    Proceedings


32Item 1A.


Risk
    Factors


32Item 2.


Unregistered Sales
    of Equity Securities and Use of Proceeds


34Item 4.


Submission of
    Matters to a Vote of Security Holders


34Item 6.


Exhibits


35Signatures


36Exhibit Index:


37EX-10.2 Employment Agreement with Gordon G. PughEX-10.3 Employment Agreement with Elliot W. Ehrich, M.D.EX-10.4 2006 Stock Option Plan for Non-Employee DirectorsEX-10.5 2002 Restricted Stock Award PlanEX-10.6 1999 Stock Option PlanEX-10.7 1998 Equity Incentive PlanEX-31.1 Section 302 Certification of CEOEX-31.2 Section 302 Certification of CFOEX-32.1 Section 906 Certification of CEO and CFO   2




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##### Table of Contents



PART 1.
    FINANCIAL INFORMATION   Item 1.
    Condensed
    Consolidated Financial Statements:  ALKERMES,
    INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)  September 30,


March 31,2006


2006(In thousands, exceptshare and per share amounts)ASSETSCURRENT ASSETS:Cash and cash equivalents

$
57,055


$
33,578Investments  short-term


263,442



264,389Receivables


64,284



39,802Inventory, net


14,514



7,341Prepaid expenses and other current
    assets


8,676



2,782Total current assets


407,971



347,892PROPERTY, PLANT AND EQUIPMENT:Land


301



301Building and improvements


23,930



20,966Furniture, fixtures and equipment


66,702



61,086Equipment under capital lease


464



464Leasehold improvements


46,370



45,842Construction in progress


29,544



23,555167,311



152,214Less: accumulated depreciation and
    amortization


(45,452
)


(39,297
)Property, plant and
    equipment  net


121,859



112,917RESTRICTED INVESTMENTS 
    long-term


5,144



5,145OTHER ASSETS


9,133



11,209TOTAL ASSETS

$
544,107


$
477,163LIABILITIES, REDEEMABLE
    CONVERTIBLE PREFERRED STOCK AND SHAREHOLDERS
    EQUITYCURRENT LIABILITIES:Accounts payable and accrued
    expenses

$
30,672


$
36,141Accrued interest


2,977



3,239Accrued restructuring costs


858



852Unearned milestone
    revenue  current portion


59,861



83,338Deferred revenue 
    current portion


200



200Convertible subordinated
    notes  current portion


676



676Long-term debt  current
    portion


1,261



1,214Total current liabilities


96,505



125,660NON-RECOURSE RISPERDAL CONSTA
    SECURED 7% NOTES


155,218



153,653CONVERTIBLE SUBORDINATED
    NOTES  LONG-TERM PORTION






124,346LONG-TERM DEBT


884



1,519UNEARNED MILESTONE
    REVENUE  LONG-TERM PORTION


102,751



16,198DEFERRED REVENUE 
    LONG-TERM PORTION


650



750OTHER LONG-TERM LIABILITIES


6,606



6,821TOTAL LIABILITIES


362,614



428,947REDEEMABLE CONVERTIBLE PREFERRED
    STOCK, par value, $0.01 per share; authorized and issued,
    1,500 shares at September 30, 2006 and March 31,
    2006 (at liquidation preference)


15,000



15,000COMMITMENTS AND CONTINGENCIES:SHAREHOLDERS EQUITY:Capital stock, par value,
    $0.01 per share; authorized, 4,550,000 shares
    (includes 2,997,000 shares of preferred stock); issued, none






Common stock, par value,
    $0.01 per share; authorized, 160,000,000 shares;
    101,229,825 and 91,744,680 shares issued, 100,406,148 and
    91,744,680 shares outstanding at September 30, 2006
    and March 31, 2006, respectively


1,012



917Nonvoting common stock, par value,
    $0.01 per share; authorized 450,000 shares; issued and
    outstanding, 382,632 shares at September 30, 2006 and
    March 31, 2006


4



4Treasury stock, at cost (823,677
    and 0 shares at September 30, 2006 and March 31,
    2006, respectively)


(12,492
)


Additional paid-in capital


806,432



664,596Deferred compensation






(374
)Accumulated other comprehensive
    income


1,517



1,064Accumulated deficit


(629,980
)


(632,991
)TOTAL SHAREHOLDERS EQUITY


166,493



33,216TOTAL LIABILITIES, REDEEMABLE
    CONVERTIBLE PREFERRED STOCK AND SHAREHOLDERS EQUITY

$
544,107


$
477,163    3




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)  Three Months Ended


Six Months EndedSeptember 30,


September 30,2006


2005


2006


2005(In thousands, except per share amounts)REVENUES:Manufacturing revenues

$
26,122


$
13,526


$
48,315


$
27,509Royalty revenues


5,813



4,035



10,952



7,639Research and development revenue
    under collaborative arrangements


17,624



16,733



32,088



23,984Net collaborative profit


11,611



12,394



21,353



12,394Total revenues


61,170



46,688



112,708



71,526EXPENSES:Cost of goods manufactured


11,822



4,360



21,160



8,877Research and development


29,817



19,370



55,680



40,992Selling, general and administrative


15,677



9,109



32,207



18,061Total expenses


57,316



32,839



109,047



67,930OPERATING INCOME


3,854



13,849



3,661



3,596OTHER INCOME (EXPENSE):Interest income


4,734



3,019



9,069



4,650Interest expense


(4,034
)


(5,212
)


(9,507
)


(10,381
)Derivative loss related to
    convertible subordinated notes






(503
)






(769
)Other (expense) income, net


(664
)


599



123



919Total other income (expense)


36



(2,097
)


(315
)


(5,581
)INCOME (LOSS) BEFORE INCOME TAXES


3,890



11,752



3,346



(1,985
)INCOME TAXES


164







335



NET INCOME (LOSS)

$
3,726


$
11,752


$
3,011


$
(1,985
)EARNINGS (LOSS) PER COMMON SHARE:BASIC

$
0.04


$
0.13


$
0.03


$
(0.02
)DILUTED

$
0.04


$
0.12


$
0.03


$
(0.02
)WEIGHTED AVERAGE NUMBER OF COMMON
    SHARES OUTSTANDING:BASIC


101,331



90,558



97,581



90,475DILUTED


105,543



96,599



102,536



90,475    4




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited) Six Months EndedSeptember 30,2006


2005(In thousands)CASH FLOWS FROM OPERATING
    ACTIVITIES:Net income (loss)

$
3,011


$
(1,985
)Adjustments to reconcile net
    income (loss) to net cash provided by operating activities:Share-based compensation


14,718



115Depreciation and amortization


5,767



5,183Other non-cash charges


2,228



2,585Derivative loss related to
    convertible subordinated notes






769Gain on investments


(153
)


(868
)Gain on sale of equipment


(9
)


Changes in assets and liabilities:Receivables


(24,482
)


(5,036
)Inventory, prepaid expenses and
    other current assets


(12,483
)


(5,095
)Accounts payable, accrued expenses
    and accrued interest


(5,683
)


1,623Accrued restructuring costs


(280
)


(671
)Unearned milestone revenue


63,076



146,412Deferred revenue


(100
)


Other long-term liabilities


71



214Net cash provided by operating
    activities


45,681



143,246CASH FLOWS FROM INVESTING
    ACTIVITIES:Additions to property, plant and
    equipment


(14,715
)


(10,910
)Proceeds from the sale of equipment


15



92Purchases of short and long-term
    investments


(189,668
)


(514,080
)Sales and maturities of short and
    long-term investments


190,922



376,703Decrease in other assets


18



53Net cash used in investing
    activities


(13,428
)


(148,142
)CASH FLOWS FROM FINANCING
    ACTIVITIES:Proceeds from issuance of common
    stock


4,304



1,796Payment of debt


(588
)


(552
)Purchase of treasury stock


(12,492
)


Net cash (used in) provided by
    financing activities


(8,776
)


1,244NET INCREASE (DECREASE) IN CASH
    AND CASH EQUIVALENTS


23,477



(3,652
)CASH AND CASH
    EQUIVALENTS  Beginning of period


33,578



47,485CASH AND CASH
    EQUIVALENTS  End of period

$
57,055


$
43,833SUPPLEMENTARY INFORMATION:Cash paid for interest

$
4,569


$
7,333Cash paid for taxes


270



Noncash activities:Conversion of
    2.5% convertible subordinated notes into common stock

$
125,000


$
    5




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS
  1.
    SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES  Basis
    of Presentation
    Form 10-K/A
    Principles of Consolidation ® ®
  Use of Estimates
  New
    Accounting Pronouncements
  Fair Value
    Measurements,
  Accounting for
    Uncertainty in Income Taxes Accounting for Income
    Taxes.
 6




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    2.
    COLLABORATIVE
    ARRANGEMENTS      3.
    COMPREHENSIVE
    INCOME (LOSS)    Three Months


Six MonthsEnded


EndedSeptember 30,


September 30,(In thousands)

2006


2005


2006


2005Net income (loss)

$
3,726


$
11,752


$
3,011


$
(1,985
)Unrealized gain (loss) on
    available-for-sale
    investments


119



(2
)


453



134Comprehensive income (loss)

$
3,845


$
11,750


$
3,464


$
(1,851
)   4.
    EARNINGS
    (LOSS) PER COMMON SHARE   7




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Three Months


Six MonthsEnded


EndedSeptember 30,


September 30,(In thousands)

2006


2005


2006


2005Numerator:Net income (loss)

$
3,726


$
11,752


$
3,011


$
(1,985
)Denominator:Weighted average number of common
    shares outstanding


101,331



90,558



97,581



90,475Effect of dilutive securities:Stock options


3,086



3,674



4,105



Restricted stock awards


312



81



220



Redeemable convertible preferred
    stock


814



2,286



630



Dilutive common share equivalents


4,212



6,041



4,955



Shares used in calculating diluted
    earnings (loss) per common share


105,543



96,599



102,536



90,475     Six MonthsEndedThree Months Ended September 30,


September 30,(In thousands)

2006


2005


2006


2005Numerator:Adjustment for interest

$
4


$
787


$
1,235


$
1,574Adjustment for derivative loss






503







769Total

$
4


$
1,290


$
1,235


$
2,343Denominator:Stock options














17,610Restricted stock awards














81Redeemable convertible preferred
    stock














2,8352.5% convertible subordinated
    notes






9,025



3,699



9,0253.75% convertible
    subordinated notes


10



10



10



10Total


10



9,035



3,709



29,561  8




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  5.
    INVENTORY,
    NET  first-in,
  September 30,


March 31,(In thousands)

2006


2006Raw materials

$
4,317


$
3,757Work in process


5,728



2,083Finished goods


4,469



1,501Total(1)

$
14,514


$
7,341     (1)
    
    Net of allowances for inventory losses of $1.0 million and
    $0.8 million as of September 30, 2006 and
    March 31, 2006, respectively.  6.
    CONVERTIBLE
    SUBORDINATED NOTES  2.5% Convertible Subordinated Notes
  7.
    RESTRUCTURING  ®
    Balance





BalanceMarch 31,





September 30,(In thousands)

2006


Payments


2006Employee separation

$
9


$



$
9Facility closure


2,359



(280
)


2,079Total

$
2,368


$
(280
)

$
2,088   8.
    REDEEMABLE
    CONVERTIBLE PREFERRED STOCK  ®
 9




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
          Research and Development Arrangements.
    9.
    SHAREHOLDERS
    EQUITY     10




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    10.
    SHARE-BASED
    COMPENSATION  Share-Based
    Payment Accounting for
    Stock-Based Compensation Accounting for Stock Issued to Employees
        Three Months


Six MonthsEnded


EndedSeptember 30,


September 30,(In thousands)

2006


2006Cost of goods manufactured

$
903


$
1,163Research and development


2,232



5,068Selling, general and administrative


3,236



8,487Total share-based compensation
    expense

$
6,371


$
14,718        11




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Three Months


Six MonthsEnded


EndedSeptember 30,


September 30,2006


2006Expected option term


4 -5 years



4 -5 yearsExpected stock volatility


50
%


50
%Risk-free interest rate


4.75% - 5.07
%


4.75% - 5.07
%Expected annual dividend yield






     Accounting for Stock-Based Compensation 
    Transition and Disclosure
  Three Months


Six MonthsEnded


EndedSeptember 30,


September 30,(In thousands, except per share amounts)

2005


2005Net income (loss)  as
    reported

$
11,752


$
(1,985
)Add: employee share-based
    compensation expense as reported in the unaudited condensed
    consolidated statement of operations


57



115Deduct: employee share-based
    compensation expense determined under the fair-value method for
    all options and awards


(5,298
)


(11,111
)Net income (loss) 
    pro-forma

$
6,511


$
(12,981
)Reported earnings (loss) per
    common share:Basic

$
0.13


$
(0.02
)Diluted

$
0.12


$
(0.02
)Pro-forma earnings (loss) per
    common share:Basic

$
0.07


$
(0.14
)Diluted

$
0.07


$
(0.14
)  12




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Three Months


Six MonthsEnded


EndedSeptember 30,


September 30,2005


2005Expected option term


4 years



4 yearsExpected stock volatility


52
%


53
%Risk-free interest rate


4.18
%


3.95
%Expected annual dividend yield






   Stock
    Options and Award Plans
    Sub-Committee Sub-Committee
  Sub-Committee Sub-Committee
       13




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
          Restricted StockOptions Outstanding


Awards OutstandingWeightedWeighted


Average





WeightedAverage


Remaining





AverageNumber of


Exercise


Contractual


Number of


Grant DateShares


Price


Term


Shares


Fair Value(In years)Outstanding at March 31, 2006


18,733,823


$
16.09



6.71



91,000


$
8.15Granted


1,248,730



19.32







297,500



18.99Exercised


(393,680
)


10.93











Vesting of restricted stock














(94,175
)


17.41Cancelled


(341,441
)


15.45







(2,000
)


11.45Outstanding at September 30,
    2006


19,247,432


$
16.43



6.41



292,325


$
16.18Exercisable at September 30,
    2006


11,785,358


$
16.85



5.16






$
  14




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Options Outstanding


Options ExercisableWeighted


Weighted





WeightedAverage


Average





AverageNumber


Remaining


Exercise


Number


ExerciseRange of Exercise Prices

Outstanding


Contractual Life


Price


Exercisable


Price(In years)$ 0.30 - $ 7.69


2,612,962



5.40


$
6.57



2,212,341


$
6.427.72 - 12.16


2,779,887



6.07



10.73



1,912,384



10.3812.19 - 14.57


2,209,944



7.58



13.43



1,079,331



13.4014.76 - 16.33


2,762,215



8.05



15.01



758,327



15.0616.69 - 18.60


3,697,347



6.66



17.63



1,738,839



16.7718.61 - 28.25


2,868,477



6.70



21.15



1,767,536



21.1228.30 - 96.88


2,316,600



4.15



31.15



2,316,600



31.15$ 0.30 - $96.88


19,247,432



6.41


$
16.43



11,785,358


$
16.85       Unvested RestrictedUnvested Stock Options


Stock AwardsWeighted





WeightedAverage





AverageNumber of


Exercise


Number of


Grant DateShares


Price


Shares


Fair ValueUnvested at March 31, 2006


7,373,398


$
16.97



91,000


$
8.15Granted


1,248,730



19.32



297,500



18.99Vested


(889,294
)


10.48



(94,175
)


17.41Cancelled


(270,760
)


15.44



(2,000
)


11.45Unvested at September 30, 2006


7,462,074


$
15.77



292,325


$
16.18        15




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    11.
    INCOME
    TAXES      12.
    LEGAL
    MATTERS       16




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##### Table of Contents



ALKERMES,
    INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    13.
    SUBSEQUENT
    EVENT  ®
           17




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##### Table of Contents



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  ® ® ®
    Forward-Looking
    Statements
    ® ®
 18




---



##### Table of Contents



and/or scale-up Share-Based Payment
 19




---



##### Table of Contents



Collaborative
    Arrangements
            Product
    Developments
  RISPERDAL
    CONSTA
  th
   20




---



##### Table of Contents



VIVITROL
    ALKS
    29
    AIR
    Insulin
  th
    Exenatide
    LAR
  ® 12-week
  Critical
    Accounting Policies
  Form 10-K/A
 21




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##### Table of Contents



Form 10-K/A
  
    Revenue recognition;
    Derivatives embedded in certain debt securities;
    Cost of goods manufactured;
    Research and development expenses;
    Restructuring charges;
    Warrant valuation;
    Accrued expenses; and
    Income taxes.  Form 10-K/A
  Share-based Compensation.
    Measurement of Redeemable Convertible Preferred
    Stock.
  Results
    of Operations
   22




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23




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24




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##### Table of Contents



Three Months


Six MonthsEnded


EndedSeptember 30,


September 30,(In thousands)

2006


2005


2006


2005Milestone revenue  cost
    recovery:Alkermes expenses incurred on
    behalf of the collaboration

$
10,117


$
6,556


$
18,473


$
6,556Cephalon net losses incurred on
    behalf of the collaboration


5,943



1,194



24,816



1,194Alkermes expenses for which
    Alkermes was solely responsible


102



5,838



297



5,838Total milestone
    revenue  cost recovery


16,162



13,588



43,586



13,588Milestone revenue 
    licenses


1,392







2,583



Total milestone
    revenue  cost recovery and licenses


17,554



13,588



46,169



13,588Payments made to Cephalon to
    reimburse their net losses


(5,943
)


(1,194
)


(24,816
)


(1,194
)Net collaborative profit

$
11,611


$
12,394


$
21,353


$
12,394   Revenue Arrangements with Multiple
    Deliverables (EITF 00-21). 12-month
      Form 10-K/A
 25




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26




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##### Table of Contents



Form 10-K/A
        Financial
    Condition
     27




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##### Table of Contents



available-for-sale
        Liquidity
    and Capital Resources
       28




---



##### Table of Contents



and/or
      Contractual
    Obligations
  Form 10-K/A
  Off-Balance
    Sheet Arrangements
    Item 3.
    Quantitative
    and Qualitative Disclosures about Market Risk  available-for-sale;
  available-for-sale
 29




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##### Table of Contents



Foreign
    Currency Exchange Rate Risk
      Item 4.
    Controls
    and Procedures  (a)
    Evaluation
    of Disclosure Controls and Procedures  Rule 13a-15(b) Form 10-K/A
 30




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##### Table of Contents



Form 10-K/A Form 10-K/A
    and/or Sub-Committee,
  (b)
    Change
    in Internal Control over Financial Reporting   31




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##### Table of Contents



PART II.
    OTHER INFORMATION  Item 1.
    Legal
    Proceedings        Item 1A.
    Risk
    Factors  Form 10-K/A
  We
    face risks related to an ongoing informal SEC inquiry into, and
    private litigation relating to, our past practices with respect
    to equity incentives.
   32




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##### Table of Contents



(Legal Proceedings) Form 10-Q
     33




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##### Table of Contents



Item 2.
    Unregistered
    Sales of Equity Securities and Use of Proceeds    Total


Approximate DollarNumber of Shares


Value of SharesTotal Number


Average


Purchased as


That May Yetof Shares


Price Paid


Part of a Publicly


be PurchasedPeriod

Purchased(a)


per Share


Announced Program(a)


Under the Program(in thousands, except share and per share amounts)April 1 through June 30


134,630


$
19.52



134,630


$
12,373July 1 through July 31














12,373August 1 through
    August 31














12,373September 1 through
    September 30


689,047



14.32



689,047



2,508Total  as of
    September 30, 2006


823,677


$
15.17



823,677     (a)
    
    In September 2005, our Board of Directors authorized a share
    repurchase program of up to $15.0 million of common stock
    to be repurchased in the open market or through privately
    negotiated transactions. The repurchase program has no set
    expiration date and may be suspended or discontinued at any
    time. We publicly announced the share repurchase program in our
    press release for the fiscal 2006 second quarter financial
    results dated November 3, 2005.     Item 4.
    Submission
    of Matters to a Vote of Security Holders      AuthorityNominee

Votes For


WithheldFloyd E. Bloom


91,586,120



2,953,634Robert A. Breyer


93,175,878



1,363,876Gerri Henwood


94,045,541



494,213Paul J. Mitchell


91,821,962



2,717,792Richard F. Pops


93,030,959



1,508,795Alexander Rich


92,761,991



1,777,763Paul Schimmel


92,733,493



1,806,261Mark B. Skaletsky


91,406,129



3,133,625Michael A. Wall


93,168,322



1,371,432    34




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##### Table of Contents



Item 6.
    Exhibits    Exhibit Index
  ExhibitNo.10
.1

Alkermes Fiscal 2007 Named
    Executive Bonus Plan (filed as exhibit 10.1 to the Current
    Report on
    Form 8-K
    on May 8, 2006 and incorporated herein by reference).10
.2

Employment Agreement with Gordon
    G. Pugh dated November 20, 200110
.3

Employment Agreement with Elliot
    W. Ehrich, M.D. dated May 30, 200010
.4

2006 Stock Option Plan for
    Non-Employee Directors10
.5

2002 Restricted Stock Award Plan10
.6

1999 Stock Option Plan10
.7

1998 Equity Incentive Plan31
.1

Rule 13a-14(a)/15d-14(a)
    Certification (furnished herewith).31
.2

Rule 13a-14(a)/15d-14(a)
    Certification (furnished herewith).32
.1

Certification pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 (furnished
    herewith).  35




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##### Table of Contents



SIGNATURES       By:
    /s/  Richard
    F. Pops        By:
    /s/  James
    M. Frates        36




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##### Table of Contents



EXHIBIT INDEX  ExhibitNo.10
.1

Alkermes Fiscal 2007 Named
    Executive Bonus Plan (filed as exhibit 10.1 to the Current
    Report on
    Form 8-K
    on May 8, 2006 and incorporated herein by reference).10
.2

Employment Agreement with Gordon
    G. Pugh dated November 20, 200110
.3

Employment Agreement with Elliot
    W. Ehrich, M.D. dated May 30, 200010
.4

2006 Stock Option Plan for
    Non-Employee Directors10
.5

2002 Restricted Stock Award Plan10
.6

1999 Stock Option Plan10
.7

1998 Equity Incentive Plan31
.1

Rule 13a-14(a)/15d-14(a)
    Certification (furnished herewith).31
.2

Rule 13a-14(a)/15d-14(a)
    Certification (furnished herewith).32
.1

Certification pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 (furnished
    herewith).  37