Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Germany-based Fresenius Kabi has scrapped its $4.3bn merger agreement with Akorn, saying that the US generic drugmaker did not fulfill various closing conditions.
Subscribe to our email newsletter
The German healthcare firm alleged that its independent investigation found material breaches of US Food and Drug Administration (FDA) integrity requirements relating to Akorn’s product development activities.
The company, in a statement, said: “Fresenius offered to delay its decision in order to allow Akorn additional opportunity to complete its own investigation and present any information it wished Fresenius to consider, but Akorn has declined that offer.”
Headquartered in Lake Forest, Illinois, Akorn develops, manufactures and commercializes generic and branded prescription pharmaceuticals along with animal and consumer health products. The US company said that it categorically disagrees with the accusations levied on it by Fresenius.
Akorn, in a statement, said: “The previously disclosed ongoing investigation, which is not a condition to closing, has not found any facts that would result in a material adverse effect on Akorn’s business and therefore there is no basis to terminate the transaction.
“We intend to vigorously enforce our rights, and Fresenius’ obligations, under our binding merger agreement.”
In April 2017, Fresenius Kabi had proposed a takeover offer of $34.00 per share to Akorn shareholders along with assumption of the US company’s debt of around $450m.
Akorn is engaged into production of sterile and non-sterile dosage forms, made up of ophthalmics, injectables, otics, topicals, oral liquids, nasal sprays and inhalatants.
The US OTC pharma products manufacturer also manufactures ointments and gels, and respiratory drugs apart from sterile injectable products.
At the time of the deal, Fresenius Kabi USA president and CEO John Ducker said that the merger will provide the German firm with specialized expertise of Akorn in development, manufacturing and marketing of alternate dosage forms, along with entry to new customer segments such as retail, ophthalmology and veterinary practices.
In another development, Fresenius Kabi’s Fresenius Medical Care made a $2.15bn deal to sell its controlling stake in Sound Inpatient Physicians to an investment group led by Summit Partners.
Image: Fresenius Kabi ends merger deal with Akorn over data integrity concerns. Photo: courtesy of Fresenius SE & Co. KGaA.
