The drugmaker is also closing a manufacturing facility in Chelsea, Massachusetts, now that Lilly has decided to cancel development of its AIR device, which was in late-stage clinical trials. Earlier this month, Lilly backed out of plans to proceed with the inhaler due to “increasing uncertainties of the regulatory environment” and commercialization concerns, but not safety issues. The move came just a few months after Pfizer ended sales of Exubera.

The job cuts amount to 18 percent of Alkermes’ workforce, according to a statement. The drugmaker doesn’t anticipate any expense savings from the restructuring during its current fiscal 2008, which ends March 31, but forecasts savings of about $15 million to $20 million in fiscal 2009. The company expects to record a restructuring charge of between $5 million and $10 million in the fourth quarter. Alkermes also estimates a fourth-quarter impairment charge of up to $15 million related to fixed assets at the closing facility.