FSNUY Fresenius SE and Company KGaA (PK)

By Colin Kellaher 

Fresenius SE on Sunday said it is terminating its $4.3 billion agreement to buy generic-drug maker Akorn Inc., but Akorn said they intend to see the deal go through.

The deal, struck last April, has been under a shadow since February, when Fresenius said it was looking into possible product-development data breaches at Akorn.

Fresenius on Sunday said Akorn has failed to fulfill several closing conditions of the deal, and that it found material breaches of Food and Drug Administration data-integrity requirements relating to Akorn's operations during its independent investigation.

The German health-care company said it offered to delay its decision to walk away from the deal to give Akorn more time to complete its own investigation, but that Akorn declined the offer.

Akorn, however, said it "categorically" disagrees with Fresenius' claims, and that the investigation isn't a condition to the deal closing.

Akorn said the investigation hasn't found any facts that would result in a material adverse effect on its business, so Fresenius has no basis to terminate the transaction.

"We intend to vigorously enforce our rights, and Fresenius' obligations, under our binding merger agreement," the Lake Forest, Ill., company said.

Shares of Akorn closed Friday at $19.70, about 42% below the $34 a share Fresenius agreed to pay for the company.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

April 22, 2018 17:39 ET (21:39 GMT)

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