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:
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Diversifies revenue base and strengthens R&D pipeline
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Expands manufacturing capabilities into additional niche dosage forms
including nasal sprays, topical gels, creams, ointments, and oral
liquids
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Provides additional breadth in retail OTC market
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Expect $15-20 million in annual run-rate synergies within 12 months
post-close
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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.
Copyright Business Wire 2014