Akorn to buy Hi-Tech Pharmacal for US$640 million

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Akorn to buy Hi-Tech Pharmacal for US$640 million

INICIO/Noticias Farmacéuticas | Posted 13/09/2013 0 Post your comment

Generic eye-drugmaker Akorn has entered into a deal to buy Hi-Tech Pharmacal (Hi-Tech) for US$640 million in cash to expand into oral liquids and ointments, including cold and cough treatments.

Hi-Tech is a specialty pharmaceutical business based in the US that develops, manufactures and promotes generic, brand-name and over-the-counter (OTC) drug products.

Under the terms of the agreement, Akorn will pay US$43.50 per share for Hi-Tech, which is 24% more than the closing share price of the company on 26 August 2013. The Hi-Tech deal is the third Akorn has made in recent years. US-based Akorn also acquired Advanced Vision Research in 2011 and Kilitch Drugs in 2012.

The acquisition of Hi-Tech strengthens Akorn’s current position as the third-largest company in the US market for generic ophthalmic drugs. The deal will also add brand-name OTC cough and cold, nasal and topical drug products to Akorn’s existing portfolio of eye care products. The combined company is expected to have annual revenues of more than US$500 million. Hi-Tech’s product pipeline is also expected to further enhance growth opportunities for the combined company.

The addition of Hi-Tech’s ‘difficult to manufacture liquid and semi-solid dosage forms’ will expand Akorn’s products beyond ophthalmics to other niche dosage forms, such as oral liquids, topical creams and ointments, nasal sprays and otics.

Akorn expects the deal to lead to annual savings of around US$15–20 million within 12 months of closing.

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Source: Akorn