Akorn Continues To Evaluate Strategic Alternatives - Quick Facts

(RTTNews) - Akorn Inc. (AKRX) said it continues to evaluate strategic alternatives to address the company's litigation-related liabilities and position the company for long-term success.

Akorn confirmed that negotiations with certain of its lenders are ongoing following the expiration of its standstill agreement on February 7, 2020.

In March 2019, Akorn announced that the Delaware Court of Chancery denied a request by Fresenius Kabi to bring a fraud claim against Akorn.

In February 2019, Fresenius had filed a proposed amended counterclaim seeking to add a new claim for fraud to its existing request for contract damages associated with the termination of the merger agreement with Akorn in 2018.

In December 2018, Akorn said it would move forward and rebuild shareholder value as an independent company following the disappointing decision from the Supreme Court of the State of Delaware upholding the lower court's decision to allow Fresenius Kabi AG to terminate the April 2017 merger agreement.

In October 2018, Delaware Chancery Court upheld German healthcare group Fresenius Kabi AG's decision to terminate the $4.3 billion deal to buy generic-drug maker Akorn.

Fresenius Kabi had inked an agreement to acquire Akorn for US$34 per share, equivalent to a total acquisition price US$4.3 billion, plus approximately US$450 million of net debt, April 2017. The acquisition was supposed to close in early 2018. But in February of 2018, Akorn came under scrutiny for possible violations of FDA data integrity rules.

In February, 2018, Fresenius started conducting an independent investigation, using external experts, into alleged breaches of FDA data integrity requirements relating to product development at Akorn. In April 2018, the German pharmaceutical firm terminated its agreement to acquire Akorn.