Craig C. Hopkinson
AlkermesAbout Craig C. Hopkinson
Craig C. Hopkinson, M.D., is Executive Vice President, Research & Development and Chief Medical Officer at Alkermes plc, serving in his current role since January 2020; he is 57 years old as of April 1, 2025 and previously held senior development and medical affairs roles at Vertex and Eisai . Under his R&D leadership, ALKS advanced orexin programs and delivered strong operational execution: FY2024 revenues exceeded $1.5B, EBITDA was $452M, GAAP net income from continuing operations was $372M, and the company retired all debt and repurchased ~$200M of shares . Long-term incentive outcomes aligned with shareholder experience: 2022 PRSUs vested at 96.65% after a +25% relative TSR modifier tied to ~80th percentile vs IBB over 2022–2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Alkermes, Inc. | Chief Medical Officer; SVP Clinical/Medicines Dev. & Medical Affairs | May 2017–Jan 2020 | Led clinical development, medical affairs, regulatory; transitioned to EVP R&D and CMO in Jan 2020 . |
| Vertex Pharmaceuticals | SVP Clinical Development; Head of Global Medical Affairs | Jul 2014–May 2017 | Led global development functions across therapeutic areas . |
| Eisai Pharmaceuticals | President, Frontier Product Creation Unit; President, Eisai Value Maximization Systems | Oct 2011–Jul 2014 | Executive management roles spanning R&D/medical affairs; extensive FDA interaction experience . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Albireo Pharma, Inc. | Director | Dec 2022–Mar 2023 | Served until acquisition by Ipsen in Mar 2023 . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $693,000 | $714,000 | $742,560; 2024 approved base salary increase +4% YoY |
| 401(k) Company Match ($) | $15,250 | $16,500 | $17,250 |
Performance Compensation
Annual Cash Performance (STIP)
| Item | 2024 |
|---|---|
| Target performance pay (% of base) | 60% |
| Actual payout amount ($) | $490,090 |
| Actual payout as % of base | 66% |
| Actual vs target | 110% of target |
| STIP incorporates corporate responsibility objectives | Yes (ESG goals integrated) |
Long-Term Incentive Plan (LTIP) – 2022 PRSUs Outcome
| Goal Category | Weighting | Target Definition | Actual Achievement | Payout Contribution |
|---|---|---|---|---|
| Financial (NGNI and EBITDA margins) | 40% | FY2024 EBITDA margin: 30% of revenue (target) | FY2024 NGNI margin 32%, EBITDA margin 29% → linear interpolation between threshold and target | 32.32% of total PRSU target |
| Commercial | 30% | Proprietary product sales goals | Below threshold (none) | 0% |
| Pipeline | 30% | Development milestones tied to lead candidates (weighted to ALKS 2680 after oncology separation) | Stretch performance (150% of metric) | 45% of total PRSU target |
| Relative TSR Modifier | +/-25% | vs iShares Biotechnology ETF (IBB) | ~79.79th percentile → +25% modifier | Total payout increased by 25% |
| Total PRSU Payout | — | — | 77.32% pre-TSR; 96.65% after TSR | 96.65% of target |
2024 Equity Grants
| Grant Date | Instrument | Quantity | Vesting | Notes |
|---|---|---|---|---|
| Feb 26, 2024 | Stock Options | 111,186 | 4 equal annual installments starting 1st anniversary | Exercise price $30.04; option awards valued per ASC 718 |
| Feb 26, 2024 | RSUs (time-vesting) | 27,464 | 4 equal annual installments starting 1st anniversary | No dividend equivalents |
| Feb 26, 2024 | PRSUs (performance-vesting) | 27,464 target | 3-year performance period; TSR modifier at end | Metrics aligned to financial and pipeline goals |
Equity Ownership & Alignment
| Ownership Metric | Value |
|---|---|
| Issued Ordinary Shares Owned | 77,740 |
| Ordinary Shares Issuable within 60 days | 281,431 |
| Total Beneficial Ownership | 359,171 |
| Ownership as % of Shares Outstanding | <1% (explicitly shown as “*”) |
| RSUs Unvested (counts) | 12,279; 17,793; 23,068; 27,464 |
| PRSUs Unearned (counts) | 34,393; 23,067; 20,598 |
| Options – Exercisable (selected grants) | 81,599 @ $58.40 exp. 6/7/2027; 55,589 @ $65.94 exp. 2/16/2028; 108,833 @ $31.93 exp. 2/21/2029; 116,722 @ $20.03 exp. 2/20/2030 |
| Options – Unexercisable (selected grants) | 50,104 @ $19.34 exp. 2/22/2031; 71,172 @ $24.59 exp. 2/18/2032; 92,271 @ $26.82 exp. 2/23/2033; 111,186 @ $30.04 exp. 2/26/2034 |
| Anti-hedging/anti-pledging policy | Prohibition for executive officers and directors |
| Stock ownership guidelines | Minimum ownership and 50% post-vest/exercise holding until compliance; all officers in compliance as of Jan 2, 2025 |
Employment Terms
| Provision | Key Terms | Quantified Potential (as of Dec 31, 2024) |
|---|---|---|
| Severance (no CIC) | 12 months: base salary + average annual cash incentive of prior 2 years; continued health benefits for 12 months | Cash severance $1,207,500; benefits $28,070 |
| Change-in-Control (double trigger) | If terminated without cause or resigns for good reason within 2 years post-CIC: pro-rata salary and pro-rata annual incentive (avg of prior 2 years) for year of termination; lump sum 1.5x base + avg incentive; health benefits for 18 months | Cash severance $2,276,190; benefits $42,106; equity acceleration value $5,963,804 |
| Equity acceleration terms | Pre-Feb 2023 grants: single-trigger acceleration at CIC (Administrator discretion for PRSUs); Post-Feb 2023 grants: double-trigger acceleration only | |
| Clawback/recoupment | Clawback expanded in 2021 to certain cash incentives; Recoupment policy adopted Oct 2023 per SEC Rule 10D-1/Nasdaq 5608 | |
| Tax gross-ups (golden parachute) | No excise tax gross-up for Hopkinson; policy discontinued for new hires after 2009 |
Multi-Year Compensation Summary
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $693,000 | $714,000 | $742,560 |
| Stock Awards ($) | $1,625,016 | $1,316,222 | $1,454,864 |
| Option Awards ($) | $1,797,854 | $1,665,586 | $1,639,227 |
| Non-Equity Incentive ($) | $415,800 | $514,080 | $490,090 |
| All Other Compensation ($) | $15,250 | $16,500 | $17,250 |
| Total ($) | $4,546,920 | $4,226,388 | $4,343,991 |
Performance & Track Record
- 2024 outcomes: revenues >$1.5B; EBITDA $452M; GAAP net income from continuing operations $372M; $200M in share repurchases; all debt retired .
- 2022 LTIP payout: overall 96.65% of target after +25% TSR modifier (Company at ~79.79th percentile vs IBB) .
- Individual contributions (2024): accelerated ALKS 2680 program into phase 2, positive phase 1b data in NT1/NT2/IH; orexin portfolio progression; support for LYBALVI lifecycle and scientific communications for ARISTADA/VIVITROL .
Compensation Structure Analysis
- Pay mix emphasizes performance: PRSUs used annually; for non-CEO NEOs, a meaningful portion of total equity is performance-vested; CEO’s >50% of equity performance-vested in 2024 .
- Governance strengths: independent compensation consultant (Alpine Rewards since mid-2024), double-trigger CIC terms, clawback/recoupment policies, anti-hedging/anti-pledging, no option repricing .
- Say-on-pay support: ~98% approval in 2024, reflecting shareholder endorsement of pay-for-performance program .
Investment Implications
- Alignment: Strong linkage between LTIP metrics (profitability, pipeline, relative TSR) and payout outcomes; anti-hedging/pledging and ownership guidelines mitigate misalignment risk .
- Retention/overhang: Significant unvested RSUs and PRSUs, plus staged vesting of 2024 awards through 2028, imply recurring vesting-driven supply; monitor 1st-anniversary and annual vest dates for potential selling pressure; options span strikes from ~$19–$66, creating varying in-the-money sensitivity to share price .
- Change-in-control economics: Double-trigger structure and 1.5x cash multiple for Hopkinson reduce windfall risk; equity acceleration value under CIC is material ($5.96M at $28.76/share), relevant for event-driven scenarios .
- Execution risk: Continued orexin program milestones and commercial performance remain key to value creation; 2024 LTIP commercial underperformance vs threshold underscores reliance on pipeline and profitability delivery for future payouts .