Akorn Inc fka AKRXQ

[Pro-Life]

Akorn Acquires Three Hospital-Based Branded Injectables from Lundbeck
Date : 12/22/2011 @ 1:30PM
Source : Business Wire
Stock : Akorn, Inc. (AKRX)

http://ih.advfn.com/p.php?pid=nmona&article=50525792&symbol=AKRX

Akorn, Inc. (NASDAQ: AKRX), a niche generic pharmaceutical company, today announced that its wholly-owned subsidiary, Oak Pharmaceuticals, has acquired three off-patent, branded, hospital-based injectables from the US subsidiary of H. Lundbeck A/S. According to the agreement, Akorn will make an upfront payment of $45 million and a subsequent milestone payment of $15 million in cash after 3 years. The initial purchase price and the subsequent milestone payment are subject to a reduction if certain sales targets are not met in the first three years and the subsequent three years post closing. The acquired portfolio consists of Nembutal®, a Schedule II controlled drug, Diuril® and Cogentin®. In addition, Akorn has signed a transition services agreement with Lundbeck to ensure product availability.

Raj Rai, Chief Executive Officer commented, “These products will strengthen Akorn’s existing portfolio of niche, hospital-based injectables and are within the scope of our manufacturing capabilities.”

Financial Impact of the Transaction

These products are expected to add approximately $30 million to $35 million in revenue in 2012 and EBITDA of $22 million to $25 million. The Company intends to issue 2012 guidance in January.

About the Products

Nembutal® (pentobarbital sodium injection, USP) is a member of the barbiturate class of medications. Nembutal is a sterile solution for intravenous or intramuscular injection in 20 mL and 50 mL multiple-dose vials. It is indicated for use as a sedative, a hypnotic for short-term treatment of insomnia, pre-anesthetic and as an anticonvulsant in the emergency control of certain acute convulsive episodes, such as those associated with status epilepticus, cholera, eclampsia, meningitis, tetanus and toxic reactions to strychnine or local anesthetics. Nembutal® is marketed through a restrictive distribution program in the United States.

Sodium Diuril is a diuretic and antihypertensive. Sodium Diuril is a dry, sterile lyophilized powder supplied in vials equivalent to 0.5g of chlorothiazide. Diuril® (chlorothiazide sodium) is indicated as adjunctive therapy in edema associated with congestive heart failure, hepatic cirrhosis, and corticosteroid and estrogen therapy. Diuril® has also been found useful in treating edema due to various forms of renal dysfunction such as nephritic syndrome, acute glomerulonephritis, and chronic renal failure.

Cogentin® (benzotropine mesylate injection) belongs to a group of medicines called anticholinergics that block the effects of acetylcholine, a neurotransmitter. Cogentin is available in 2 mL ampules with 1 mg benztropine mesylate per mL. It is used to treat the symptoms of Parkinson’s disease and is also useful in the control of extrapyramidal disorders (except tardive dyskinesia) due to neuroleptic drugs (e.g. phenothiazines).