Eye Drug Firm Akorn To Acquire Hi-Tech Pharmacal For $640 Million

Akorn, Inc. and Hi-Tech Pharmacal Co., Inc. have entered into a definitive agreement under which Akorn.

will acquire Hi-Tech for $640 million in cash. Hi-Tech is a specialty pharmaceutical company developing, manufacturing and marketing generic and branded prescription and over-the-counter (OTC) products. Hi-Tech specializes in difficult to manufacture liquid and semi-solid dosage forms and produces and markets a range of sterile ophthalmics, oral solutions and suspensions, as well as topical ointments and creams, nasal sprays, otics, and sterile ointment and gels products. Hi-Tech’s Health Care Products division is a leading developer and marketer of OTC products. Hi-Tech’s ECR Pharmaceuticals subsidiary markets branded prescription products.

Akorn expects to achieve between $15 million and $20 million in annual run-rate synergies within 12 months of close. The combined company is expected to have annual revenues in excess of $500 million and the transaction is expected to be accretive to Akorn’s nonGAAP adjusted earnings per share immediately upon closing.

Raj Rai, Akorn’s Chief Executive Officer, commented, “This is a transformative event for our company. The portfolio of Hi-Tech products is a great strategic fit to our currently marketed products as it diversifies our offering to our retail customers beyond ophthalmics to other niche dosage forms such as oral liquids, topical creams and ointments, nasal sprays and otics. In addition, we are excited about Hi-Tech’s product pipeline which would further enhance growth opportunities for the combined platform.”Akorn-CEO-Raj-Raia

Rai further added, “The acquisition of Hi-Tech will also add branded OTC products in the categories of cough & cold, nasals, and topicals to Akorn’s existing TheraTears® brand of eye care products. We also plan to capitalize on the manufacturing capabilities of Hi-Tech to further expand our presence in the private label OTC business.”

Hi-Tech’s Chief Executive Officer, David Seltzer, said, “We are excited about the transaction as it delivers compelling value to our shareholders. The combined portfolio of marketed products and products in development offer a very unique platform with great growth potential. We are very pleased to be joining forces with Akorn and their strong management team led by Raj Rai.”

Current Issues



South East Asia

Sign Up