LAKE FOREST, Ill., April 1, 2020 /PRNewswire/ -- Akorn, Inc.
(Nasdaq: AKRX), a leading specialty pharmaceutical company, today
announced that it no longer has any bids in the Sale Process that
are sufficient to pay all obligations under its term loan
agreement. Accordingly, the Company now toggles to the alternative
milestones that were detailed in the Second Amended Standstill
Agreement and are summarized in the 8-K filed earlier today.
Doug Boothe, Akorn's President
and Chief Executive Officer, commented, "Unfortunately, our sale
process has been negatively impacted by the broader market
uncertainties related to the COVID-19 crisis. However, we are
working closely with our lenders to determine the best path forward
to ensure that the Company is positioned for long-term
success."
"We remain confident in the fundamental strength of Akorn's
business. Our commitment to patients, customers and communities is
unwavering as we work to fulfill our mission which, now more than
ever, is critical for those we serve. We continue to work
tirelessly to improve patients' lives through the quality,
availability and affordability of our products."
The Company plans to continue to operate as usual, including
delivering safe and effective pharmaceutical products to customers
and fulfilling contractual obligations, including payments to
vendors.
About Akorn
Akorn, Inc. is a specialty pharmaceutical company engaged in
the development, manufacture and marketing of multisource and
branded pharmaceuticals. Akorn has manufacturing
facilities located in Decatur, Illinois; Somerset, New
Jersey; Amityville, New York;
Hettlingen, Switzerland and Paonta
Sahib, India that manufacture ophthalmic, injectable and
specialty sterile and non-sterile pharmaceuticals. Additional
information is available on Akorn's website
at www.akorn.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes statements that may constitute
"forward-looking statements," including expectations regarding the
Company's business, the path and milestones for executing a sale of
the Company's business, potentially through the filing of Chapter
11 cases under the U.S. Bankruptcy Code, the Company's continued
engagement in discussions with the Standstill Lenders regarding the
Sale Process and other statements regarding the Company's plans and
strategy. When used in this document, the words "will," "expect,"
"continue," "believe," "anticipate," "estimate," "intend," "could,"
"strives" and similar expressions are generally intended to
identify forward-looking statements. These statements are made
pursuant to the safe harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. A number of important
factors could cause actual results of the Company and its
subsidiaries to differ materially from those indicated by such
forward-looking statements. These factors include, but are not
limited to: (i) the effect of the Delaware Court of Chancery's October 1, 2018 decision against the Company and
the Delaware Supreme Court's December 7,
2018 order affirming the Chancery Court's decision on the
Company's ability to retain and hire key personnel, its ability to
maintain relationships with its customers, suppliers and others
with whom it does business, or its operating results and business
generally, (ii) the risk that ongoing or future litigation against
the defendants or related to the Chancery Court's decision and
Delaware Supreme Court's affirmation may result in significant
costs of defense, indemnification and/or liability, (iii) the
outcome of the investigation conducted by the Company with the
assistance of outside consultants, into alleged breaches of FDA
data integrity requirements relating to product development at the
Company and any actions taken by the Company, third parties or the
FDA as a result of such investigations, (iv) the difficulty of
predicting the timing or outcome of product development efforts,
including FDA and other regulatory agency approvals and actions, if
any, (v) the timing and success of product launches, (vi)
difficulties or delays in manufacturing, (vii) the Company's
increased indebtedness and compliance with certain covenants and
other obligations under the Amended Standstill Agreement, which
create material uncertainties and risks to its growth and business
outlook, (viii) the Company's obligation under the Amended
Standstill Agreement to pay certain fees and expenses and increased
interest margin, (ix) the Company's exploration of strategic
alternatives, including the alternatives of seeking to restructure
its indebtedness and/or implement a strategic transaction
(including a sale of its assets) with the protections of a filing
under Chapter 11 of the U.S. Bankruptcy Code, (x) the risk that the
insurance proceeds, common shares or other consideration to be
delivered pursuant to the settlement agreement entered into and
approved by the court in connection with the previously disclosed
securities class action is not available at the appropriate time
and (xi) such other risks and uncertainties outlined in the risk
factors detailed in Part I, Item 1A, "Risk Factors," of the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2019 (as filed with the
Securities and Exchange Commission ("SEC") on February 26, 2020) and other risk factors
identified from time to time in the Company's filings with the SEC.
Readers should carefully review these risk factors, and should not
place undue reliance on the Company's forward-looking statements.
These forward-looking statements are based on information, plans
and estimates at the date of this press release. The Company
undertakes no obligation to update any forward-looking statements
to reflect changes in underlying assumptions or factors, new
information, future events or other changes.
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SOURCE Akorn, Inc.