Oak Pharmaceuticals acquires three Lundbeck hospital-based injectables

Akorn, Inc. (NASDAQ: AKRX), a niche generic pharmaceutical company, today announced that its wholly-owned subsidiary, Oak Pharmaceuticals, has acquired three off-patent, branded, hospital-based injectables from the US subsidiary of H. Lundbeck A/S. According to the agreement, Akorn will make an upfront payment of $45 million and a subsequent milestone payment of $15 million in cash after 3 years. The initial purchase price and the subsequent milestone payment are subject to a reduction if certain sales targets are not met in the first three years and the subsequent three years post closing. The acquired portfolio consists of Nembutal®, a Schedule II controlled drug, Diuril® and Cogentin®. In addition, Akorn has signed a transition services agreement with Lundbeck to ensure product availability.

Raj Rai, Chief Executive Officer commented, "These products will strengthen Akorn's existing portfolio of niche, hospital-based injectables and are within the scope of our manufacturing capabilities."