Akorn's Current Price Is Nuts
Andrew Walker, CFA • 10 Comments
Andrew Walker, CFA • 10 Comments
Akorn Inc: Growing Under The Radar
Mon, May 16, 4:52 PM
Mon, May 16, 4:43 PM
Tue, May 10, 9:16 AM
Tue, May 10, 6:57 AM
Tue, Mar. 22, 12:41 PM
Tue, Mar. 22, 11:23 AM
- On a preliminary basis, Akorn's (AKRX +37.7%) 2015 EPS was $1.14 on revenues of $985M. Non-GAAP EPS was $1.93, non-GAAP EBITDA was $455M and CF Ops was $345M.
- The company launched 12 new products during the year. It received 15 product approvals from the FDA along with two tentative approvals.
- It expects to file its restated 2014 financials and its delinquent 2015 financials by May 9.
- 2016 Guidance: Revenues: $1,060M - 1,080M (+9%); EPS: $1.56 - 1.66 (+41%); Non-GAAP EPS: $2.10 - 2.20 (+11%); Non-GAAP EBITDA: $485M - 505M (+9%).
- Shares are up 38% on more than double normal volume.
- Update: In a statement released on May 6, the company says it will file its 2015 10-K on Monday, May 9 and its 10-Q for Q1 2016 after the close on May 16. Management will host a conference call at 10:00 am ET on Tuesday, May 17 to discuss its Q1 results and provide a business update.
Tue, Mar. 22, 9:20 AM
Tue, Mar. 22, 7:06 AM
Wed, Jan. 27, 6:36 PM
- The Audit Committee of Akorn's (NASDAQ:AKRX) Board of Directors concludes its investigation into the company's accounting and other matters. The inquiry began last April after accounting errors were found related to transactions involving sales to wholesalers, direct purchasers and other transactions.
- The Committee found no instances of fraud or intentional misconduct but it did make remedial recommendations to management and the board, which have either already been implemented or will be implemented shortly.
- Previously: Akorn to restate financial statements; shares drop after hours (April 24, 2015)
Dec. 22, 2015, 7:54 AM
- Noting significant short interest and recent selloffs, analyst Randall Stanicky makes INSY and SGNT his top "out of consensus" picks for 2016. INSY's short interest is 46% of the float and SGNT's is 4.4%.
- Though M&A will continue next year, there will be greater deal scrutiny and fewer targets, and Stanicky favors the targets vs. the accretive acquirers.
- Mylan (NASDAQ:MYL) and Impax Labs (NASDAQ:IPXL) are seen as most likely to pursue "transformative" deals, while Teva (NYSE:TEVA), Perrigo (NYSE:PRGO), Sagent, Eagle (NASDAQ:EGRX), Depomed (NASDAQ:DEPO), and Endo (NASDAQ:ENDP) are likely to pursue bolt-on purchases.
- Most likely targets: Akorn (NASDAQ:AKRX) and Flexion (NASDAQ:FLXN).
- Top large-cap picks: Endo and Teva.
- Related: 45% Upside For 2016's Top Takeover Target (Dec. 1)
Nov. 13, 2015, 6:24 PM
- Akorn (AKRX +4.5%) has received a noncompliance notice from Nasdaq for not timely filing its 10Q for the quarter ended Sept. 30, the company says.
- The delay is linked to restatement of financials that the company said in April that it would pursue. At the time, it said it would restate for the annual period ended Dec. 31, 2014, and for the quarters ended in June, September and December.
- It expects to file those amended reports in the first quarter of 2016.
- Separately, Nasdaq had notified the company on Nov. 3 that it would be subject to delisting unless it requested a hearing; it's been granted a hearing but says there's "no assurance" that its request for continued listing will be granted as it works back to compliance.
- Previously: Akorn to restate financial statements; shares drop after hours (Apr. 24 2015)
Oct. 22, 2015, 12:52 PM
- Specialty generic drugs firm Akorn (AKRX -9.9%) tries to stem the bleeding engulfing some pharma companies over their use of specialty pharmacies to distribute products. In a statement, it says that it does not use alternative fulfillment systems or specialty pharmacies to distribute its products nor does it have a financial interest in such systems or specialty pharmacies.
- Shares are down ~30% this week as a result of investors taking a broad view of the risks. Bulls, no doubt, see the weakness as a buying opportunity.
Oct. 13, 2015, 5:14 PM
- Generic drugmaker Akorn (AKRX -6.1%) has named Duane Portwood its new chief financial officer, effective Oct. 30.
- Portwood has been corporate controller and VP at Home Depot since 2006. Prior to that he had been with Wm. Wrigley Jr. Co.
- Akorn's interim CFO, Randall Pollard, will continue his role as senior VP, chief accounting officer and corporate controller.
- The stock is down 28.5% over the past month.
- Previously: Akorn launches generic antidote for acetaminophen overdose (Jul. 08 2015)
Jul. 22, 2015, 4:37 PM
- Lipocine (NASDAQ:LPCN) initiated with Buy rating and $36 (163% upside) price target by Roth Capital Partners.
- Pieris Pharmaceuticals (NASDAQ:PIRS) initiated with Buy rating and $7 (149% upside) price target by Roth Capital Partners.
- Lannett (NYSE:LCI) initiated with Buy rating and $75 (27% upside) price target by Susquehanna Financial Group.
- Akorn (NASDAQ:AKRX) initiated with Neutral rating and $48 (5% upside) price target by Susquehanna Financial Group.
- Intuitive Surgical (NASDAQ:ISRG) upgraded to Buy from Hold by Canaccord Genuity. Price target raised to $615 (12% upside) from $517.
- Anacor Pharmaceuticals (NASDAQ:ANAC) upgraded to Buy from Neutral by Goldman Sachs. Price target raised to $195 (30% upside) from $60.
- Biogen (NASDAQ:BIIB) downgraded to Neutral from Buy by Piper Jaffray. Price target lowered to $410 (5% upside) from $485.
Jul. 8, 2015, 7:26 AM| Jul. 8, 2015, 7:26 AM
Jun. 18, 2015, 12:50 PM
- Merck (MRK +1.5%) agrees to pay $5.9M to settle a Justice Department case involving the promotion of a treatment for bacterial conjunctivitis or pink eye, for an unapproved (off-label) indication. The alleged misbehavior occurred in its Inspire Pharmaceuticals unit, which the company eventually sold to Akorn Pharmaceuticals (AKRX +3.4%). The company promoted the product, AzaSite, for the unapproved indication of blepharitis (inflammation of the eyelids).
- This is not the first time Merck has been slapped with such a penalty. In 2011, it paid over $950M to settle allegations pertaining to its promotional practices of the anti-inflammatory blockbuster Vioxx.
Akorn, Inc. is a niche pharmaceutical company that develops, manufactures and markets generic and branded prescription pharmaceuticals as well as animal and consumer health products. It specializes in difficult-to-manufacture sterile and non-sterile dosage forms including: ophthalmics,... More
Industry: Drugs - Generic
Country: United States
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