Entering text into the input field will update the search result below

Akorn Inc. (AKRX) to Acquire Advanced Vision Research, Inc.

May 04, 2011 5:41 PM ETQ
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Yesterday, generic pharmaceutical company Akorn, Inc. announced that it has entered into an agreement to acquire Advanced Vision Research, Inc.

Based in Woburn, MA AVR is a premier over-the-counter ophthalmic company that develops and markets eye care products under the TheraTears® and MacuTrition® brand names. In 2010, AVR generated sales of $20 million, which consisted of domestic sales through major retail chains and sales in 20 countries across 5 continents.

Akorn also announced plans to launch a new Consumer Health Division to enter the $1.2 billion over the counter eye care market, pending the acquisition of AVR. Akorn will license new products and develop private labeled eye care products for major retailers in the hopes of further expanding its market reach. The company named Bruce Kutinsky, Pharm.D., as its President of the newly formed Consumer Health Division. Mr. Kutinsky joined Akorn as its Senior Vice President of Corporate Strategy in 2010. Prior to joining Akorn, Mr. Kutinsky served as the Vice President of Strategic Solutions at Walgreens. Mr. Kutinsky held various senior management positions at Option Care, Inc., which was acquired by Walgreens in 2007. Mr. Kutinsky started his career as a retail pharmacist and has a doctor of pharmacy degree from the University of Michigan, Ann Arbor, MI.

Raj Rai, Akorn CEO, remarked, “AVR is a great strategic platform to expand into the OTC eye care market. We have had a positive relationship with AVR for several years as a primary contract manufacturer. With the acquisition, we can add value in future growth as we have an existing sales infrastructure that markets products to ophthalmologists, optometrists, and retailers nationwide complementing AVR’s sales initiatives.”

Akorn expects the AVR acquisition to be neutral to its 2011 earnings per share after the impact of transaction related expenses and purchase price allocation of $.01 to $.02 in earnings per share. In 2012, AVR is expected to be accretive by $.03 to $.04 earnings per share.

Please see disclaimer on QualityStocks website: disclaimer.qualitystocks.net

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.