Hi-Tech Pharmacal Co., Inc.
) recently entered into an agreement according to which Hi-Tech
will be acquired by Akorn for $43.50 per share or $640 million in
The offer price reflects a 23.5% premium on the closing price on
the day before the acquisition was announced.
Hi-Tech focuses on specialty manufacturing and marketing of
prescription, over-the-counter and nutritional products.
Hi-Tech's specialty lies in manufacturing liquid and semi-solid
dosage forms. It also 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.
Akorn expects the acquisition to provide annual run-rate
synergies of $15-$20 million within 12 months after the
acquisition is completed. Post acquisition, annual revenues are
expected to exceed $500 million. It is expected that the deal
will be accretive to Akorn's non-GAAP adjusted earnings per share
immediately upon completion. Akorn expects the transaction to
close in the first quarter of 2014.
The acquisition will broaden Akorn's product portfolio and
substantially increase its retail presence in prescription as
well as OTC products.
Akorn, which is currently the third largest U.S. generic
ophthalmic player, will experience pipeline expansion through
this acquisition. Post acquisition, the combined unit will have
73 abbreviated new drug applications (ANDAs) filed with the U.S.
Food and Drug Administration (FDA) of which 57 belongs to Akorn
and 18 will come from Hi-Tech.
Akorn currently carries a Zacks Rank #2 (Buy), while Hi-Tech
carries a Zacks Rank #5 (Strong Sell). A stock that is worth
Gilead Sciences Inc.
) with a Zacks Rank #1 (Strong Buy).
Another acquisition agreement announced recently is that of
Sangamo Biosciences Inc.
) and privately-held biotech company Ceregene, Inc.
AKORN INC (AKRX): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis
HI TECH PHARMA (HITK): Free Stock Analysis
SANGAMO BIOSCI (SGMO): Free Stock Analysis
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