Akorn Completes Acquisition of Hi-Tech Pharmacal
April 17 2014 - 9:20AM
Business Wire
Akorn, Inc. (NASDAQ: AKRX), a niche pharmaceutical company,
announced today that it has completed its previously announced
acquisition of Hi-Tech Pharmacal Co., Inc. (NASDAQ: HITK) for $640
million in cash. The combination of Akorn and Hi-Tech will
transform the Company into a larger, more diversified generic
player. This combination also brings critical mass and scale to
Akorn’s business and strengthens the Company’s position with retail
and institutional customers.
Key Acquisition Highlights:
- Diversifies revenue base and
strengthens R&D pipeline
- Expands manufacturing capabilities into
additional niche dosage forms including nasal sprays, topical gels,
creams, ointments, and oral liquids
- Provides additional breadth in retail
OTC market
- Expect $15-20 million in annual
run-rate synergies within 12 months post-close
- Anticipate strong combined cash flow to
allow for rapid debt pay-down
”We are excited to announce that we have completed the
acquisition of Hi-Tech, our largest acquisition to date,” said Raj
Rai, Chief Executive Officer of Akorn. “This transformative
acquisition diversifies our revenue base and strengthens our
capabilities in both manufacturing and R&D.”
Rai further added, “We welcome our new colleagues from the
Hi-Tech team and look forward to collaborating with them on the
future direction of our company. Our priority now turns to
executing on our integration plan. We expect that the acquisition
will be immediately accretive to non-GAAP earnings.”
About Akorn, Inc.
Akorn, Inc. is a niche 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; and
Paonta Sahib, India where the Company manufactures sterile
ophthalmic and injectable pharmaceuticals and non-sterile nasal
sprays, oral liquids, and topical creams and ointments. Additional
information is available on the Company’s website at
www.akorn.com.
Forward-Looking Statements
Certain statements in this document are “forward-looking
statements” under Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements are based on current expectations. However, actual
results may differ materially from expectations due to the risks,
uncertainties and other factors that affect Akorn’s business,
including the business acquired through the acquisition of Hi-Tech.
These factors include, among others, the occurrence of any event,
change or other circumstances that could adversely affect Akorn’s
ability to obtain additional funding or financing to operate and
grow its combined business; the effects of federal, state and other
governmental regulation ; ability to obtain and maintain regulatory
approvals for its products; success in developing, manufacturing,
acquiring and marketing new products; the success of strategic
partnerships for the development and marketing of new products;
ability to successfully integrate acquired businesses and products,
including Hi-Tech’s business; and the effects of competition from
other generic pharmaceuticals and from other pharmaceutical
companies. Akorn and Hi-Tech provide additional information about
these and other factors in the reports filed with the SEC,
including, but not limited to, those described in “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” in Akorn and Hi-Tech’s annual reports on
Form 10-K for the year ended December 31, 2013 and April 30, 2013,
respectively. Except as required by applicable law, Akorn disclaims
any obligation to update any forward-looking statement in this
document, whether as a result of changes in underlying factors, new
information, future events or otherwise.
Akorn, Inc.Tim Dick, Chief Financial Officer(847)
279-6150orAlpha IR GroupChris Hodges, (312) 445-2870
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