Akorn buys Hi-Tech Pharmacal for $640 million in cash
LAKE FOREST, Ill. — Akorn on Monday morning announced its proposed acquisition of Hi-Tech Pharmacal for $640 million in cash.
“This is a transformative event for our company," stated Raj Rai, Akorn’s CEO. "The portfolio of Hi-Tech products is a great strategic fit to our currently marketed products as it diversifies our offering to our retail customers beyond ophthalmics to other niche dosage forms such as oral liquids, topical creams and ointments, nasal sprays and otics. In addition, we are excited about Hi-Tech’s product pipeline which would further enhance growth opportunities for the combined platform," he said. “The acquisition of Hi-Tech will also add branded OTC products in the categories of cough and cold, nasals, and topicals to Akorn’s existing TheraTears brand of eye care products. We also plan to capitalize on the manufacturing capabilities of Hi-Tech to further expand our presence in the private label OTC business.”
Hi-Tech specializes in difficult-to-manufacture liquid and semi-solid dosage forms and produces and markets a range of oral solutions and suspensions, as well as topical ointments and creams, nasal sprays, otics, sterile ophthalmics and sterile ointment and gels products in both the pharmaceutical and over-the-counter arenas.
Akorn currently has 57 abbreviated new drug applications filed with the Food and Drug Administration with a combined annual addressable IMS market size of approximately $5.6 billion. Hi-Tech has 18 filed aNDAs with a combined annual addressable IMS market size of approximately $2.6 billion, Akorn reported.
Under the terms of the agreement, Akorn will pay $640 million in cash, or $43.50 per share. This represents a 23.5% premium over the closing price on August 26. The combined company is expected to have annual revenues in excess of $500 million.
The acquisition will be subject to customary conditions, including termination of the waiting period under the provisions of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Pending the satisfaction of such customary conditions, Akorn anticipates closing the transaction in the first quarter of 2014.
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Annual physicals occur just prior to BTS season
Nearly 8-out-of-10 viewers who bring their child to the doctor’s office for a physical are doing so one to three months before school starts, according to an online survey of more than 500 AccentHealth viewers conducted in July. The majority of viewers indicated they begin their shopping about one month before school starts — either after or overlapping the timing for back-to-school physicals. To see more Patient Views, click here.
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Source: AccentHealth. To view the demographic breakdown of participants, click here.
Reports: Most drugs safe for breast-feeding mothers, babies
NEW YORK — A new report by the American Academy of Pediatrics indicates that it is safe for women to take the medications and vaccinations they need while breast-feeding.
According to HealthDay News, the AAP worked with the Food and Drug Administration to produce the report, which is about proposed changes to drug labels. As part of the changes, the section, currently titled "Nursing Mothers," would be changed to "Lactation" and include more information about how a drug might be transferred to breast milk, and any potential harm it might cause to a baby.
The report also refers women and their doctors to a database maintained by the U.S. National Library of Medicine called LactMed, which contains information on more than 450 drugs. There are more than 3,000 unique pharmaceuticals available, but most have not been studied in breast-feeding women.