Akorn's Current Price Is Nuts
Andrew Walker, CFA • 10 Comments
Andrew Walker, CFA • 10 Comments
Akorn Inc: Growing Under The Radar
Apr. 8, 2015, 11:47 AM
- Mylan (MYL +10.4%) submits a non-binding proposal to Perrigo (PRGO +27.6%) to acquire it for $205 per share in a cash-and-stock deal. If consummated, the combined company would generate over $15B in annual sales.
- Generic drug-related tickers: (LCI +3%)(AKRX +4.4%)(MNK +2.8%)(IPXL +2.3%)(TARO +2.3%)(TEVA +3.2%)
Sep. 11, 2014, 4:07 PM
- Akorn (AKRX +3.4%) is supposedly exploring a bid for the U.S. subsidiary of Belgian drugmaker UCB SA, generics firm Kremers Urban Pharmaceuticals, for as much as $2B.
- The transaction would enable it to move its tax domicile overseas.
- According to accounting firm PricewaterhouseCoopers, Akorn's current effective tax rate of ~37% is significantly higher than the industry average of ~23%.
Aug. 5, 2014, 1:53 AM
- The Federal Trade Commission has given U.S. antitrust approval to Akorn's (NASDAQ:AKRX) acquisition of prescription drug-maker VersaPharm on condition that Akorn sell its rights to make a generic version of the tuberculosis drug rifampin.
- Akorn entered into a definitive agreement in May to purchase VersaPharm for $440M.
- Watson Laboratories, a subsidiary of Actavis (NYSE:ACT), has agreed to buy Akorn's rights to rifampin.
- ACT +1.5% AH
Jun. 20, 2014, 12:06 PM
- Citing a poor strategic fit with its focus on niche dosage forms, Akorn (AKRX +3.3%) sells its subsidiary ECR Pharmaceuticals to Valeant Pharmaceuticals (VRX +2.9%) for $41M in cash and the assumption of certain liabilities. Akorn acquired the branded drug maker when it purchased Hi-Tech Pharmacal last year.
May 9, 2014, 11:10 AM
- Akorn (AKRX +3.8%) enters into a definitive agreement to acquire VPI Holdings, the parent company of VersaPharm for $440M cash.
- VersaPharm is a privately-held maker of multi-source prescription drugs focused on niche applications in dermatology, TB and hemophilia. It has a pipeline of over 20 products and 11 ANDAs under regulatory review.
- The acquisition is expected to add $90M - 100M in revenues and $0.10 - 0.12 in EPS, excluding certain items. Akorn will fund the purchase with debt.
Jan. 9, 2014, 1:48 PM
- Akorn (AKRX -0.3%) acquires the NDA and all rights to Betimol 0.25% and 0.5%, a prescription eye drop medicine for ocular hypertension/glaucoma, from Santen. It plans to begin shipment in Q1.
- Betimol is expected to add $0.03-$0.04 in EPS on $8M-$9M in revenue in 2014.
- Previous: Akorn acquires eye drop solutions from Merck in $52.8M deal
Aug. 27, 2013, 7:21 AM
- Akorn (AKRX) has agreed to pay $640M to acquire Hi-Tech Pharmacal (HITK), which specializes in difficult-to-manufacture liquid and semi-solid dosage forms of drugs.
- The offer of $43.50 a share represents a premium of 23.5% to Hi-Tech's closing price of $35.21 yesterday.
- The combined company is expected to generate annual revenues of over $500M, with the deal expected to add to Akorn's adjusted EPS immediately after closing. The company expects to achieve $15-20M in annual run-rate synergies within 12 months after that.
- Hi-Tech provides oral solutions and suspensions, topical ointments and creams, nasal sprays, otics, sterile ophthalmics, and sterile ointment and gels.
- Hi-Tech's shares are suspended until 7:30 ET, while those of Akorn are +0.7%. (PR)
Akorn, Inc. manufactures and markets a full line of diagnostic and therapeutic ophthalmic pharmaceuticals as well as niche hospital drugs and injectable pharmaceuticals. It also markets and distributes vaccines purchased from outside sources. The company customers include physicians,... More
Industry: Drugs - Generic
Country: United States
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