Akorn, Inc. (NASDAQ: AKRX), a niche generic pharmaceutical company, today reported that its Akorn-Strides LLC joint venture has entered into a purchase agreement with Pfizer Inc. to sell 16 Abbreviated New Drug Approvals (ANDAs) and 6 filed ANDAs. For its portion, Akorn, Inc. will receive $35 million in cash. Akorn-Strides LLC will continue to manufacture and distribute the approved products until April 30, 2011.
In the three quarters ended September 30, 2010, Akorn recognized $1.9 million in revenue and approximately $2.0 million in adjusted EBITDA as a result of its participation in the Akorn-Strides LLC joint venture.
Raj Rai, Chief Executive Officer, commented, "This is a positive outcome for Akorn as the proceeds from the sale provide us with immediate access to capital to accelerate our infrastructure improvements, pursue acquisitions and in-licensing of niche pharmaceuticals, as well as strengthen our balance sheet. We would like to thank our joint venture partner, Strides, for helping build value in our joint venture which has resulted in a mutually beneficial strategic outcome."
SOURCE Akorn, Inc.
