Akorn (AKRX) to Acquire Xopenex; Sees Accretion in FY15

Akorn (Nasdaq: AKRX) announced that it has signed a definitive agreement ("Agreement") to acquire certain rights to short-acting bronchodilator Xopenex® (levalbuterol HCI) Inhalation Solution (IS) from Sunovion Pharmaceuticals Inc. for $45 million, paid in cash at closing, net of certain liabilities. According to IMS Health, the U.S. market for both the generic and branded versions of Xopenex® IS was approximately $280 million for the twelve-month period ending August 2014.

"We are excited to announce this transaction which will expand Akorn's offering of inhaled therapeutics," said Raj Rai, CEO, Akorn. "The addition of Xopenex® IS further strengthens and diversifies Akorn's portfolio of products with niche dosage forms."

"We are pleased to conduct this transaction with Akorn to allow Xopenex® IS to continue to be available to patients," said Hiroyuki Baba, Executive Vice President, Corporate Strategy for Sunovion. "Our plan is to recognize value gained from the sale of this product to invest back in the business, allowing us to continue to provide effective treatments for patients."

Akorn expects this transaction to add approximately $18 million to $20 million in revenues and approximately $0.07 to $0.08 of net income per diluted share in 2015, excluding the impact of acquisition-related amortization.

Akorn plans to ship product immediately upon closing the transaction and Sunovion will work with Akorn to ensure uninterrupted access to patients.

Sunovion will continue to sell Xopenex HFA® (levalbuterol tartrate) Inhalation Aerosol, another formulation of the product, in all dosage strengths and formulations. Sunovion is dedicated to providing effective treatments to individuals with respiratory conditions and has several promising compounds in development.

The boards of both Sunovion and Akorn, Inc. have approved the transaction and Agreement; however, the sale is subject to customary closing conditions.

You May Also Be Interested In

• DermTech (DMTK) to Explore Strategic Alternatives and Implement Restructuring Plan
• Cyngn Inc (CYN) CEO Issues Business Update
• Takeda (TAK) U.S. FDA Approves Subcutaneous Administration of ENTYVIO