Akorn's Current Price Is Nuts
Andrew Walker, CFA • 10 Comments
Andrew Walker, CFA • 10 Comments
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)