Supreme Court of the State of Delaware Rules Against Akorn, New CEO Search Underway
December 07 2018 - 5:04PM
Akorn, Inc. (NASDAQ: AKRX) today said it will move forward and
rebuild shareholder value as an independent company following the
disappointing decision from the Supreme Court of the State of
Delaware upholding the lower court’s decision to allow Fresenius
Kabi AG to terminate the April 2017 merger agreement.
With the litigation process concluded, Akorn’s Board of
Directors announced that it is engaged in a formal search for a new
chief executive officer to lead the company into its next phase.
Current CEO Raj Rai has decided to retire and will assist the board
to ensure a smooth transition and remain in his role until the
hiring date of the new chief executive.
“We recognize that this has been an extended period of
uncertainty for Akorn’s customers, employees and investors and the
Board is committed to ensuring the company’s stability and
long-term growth,” said Board Chairman Alan Weinstein. “While there
is work to do, Akorn’s future remains bright thanks to its
manufacturing, quality and generics expertise and is not dependent
upon a consummated transaction with Fresenius. We thank Raj for his
years of service with Akorn and his success in building the company
into a leading organization in a highly competitive industry.”
Akorn added that despite misleading allegations made during the
litigation process to damage its reputation among various
stakeholders, Akorn has received several new Abbreviated New Drug
Application approvals from the Food and Drug Administration.
The company also continues to have strong customer relationships
and engaged employees who are dedicated to its success.
Additional updates will be provided as available.
Cautionary Statement Regarding Forward-Looking
Statements
This press release includes statements that may constitute
"forward looking statements", including expectations to rebuild
shareholder value, improve processes in response to regulatory
requirements, reduce operating costs, and other statements
regarding Akorn's goals and strategy. When used in this document,
the words “anticipate,” "plan," "will," "continue," “believe,”
“estimate,” “intend,” “believe,” “anticipate,” “could,” and
“expect” and similar expressions are generally intended to identify
forward-looking statements. These statements are made pursuant to
the safe harbor provisions of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. A number of important factors could cause actual
results of Akorn and its subsidiaries to differ materially from
those indicated by such forward-looking statements. These factors
include, but are not limited to: (i) the effect of the court’s
decision on Akorn’s ability to retain and hire key personnel, its
ability to maintain relationships with its customers, suppliers and
others with whom it does business, or its operating results and
business generally, (ii) the risk that ongoing or future litigation
related to the court’s decision may result in significant costs of
defense, indemnification and/or liability, (iii) the outcome of the
investigation conducted by Akorn with the assistance of outside
consultants, into alleged breaches of FDA data integrity
requirements relating to product development at Akorn and any
actions taken by Akorn, third parties or the FDA as a result of
such investigations, (iv) the difficulty of predicting the timing
or outcome of product development efforts, including FDA and other
regulatory agency approvals and actions, if any, (v) the timing and
success of product launches, (vi) difficulties or delays in
manufacturing, and (vii) such other risks and uncertainties
outlined in the risk factors detailed in Part I, Item 1A, “Risk
Factors,” of Akorn’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2017 (as filed with the Securities and Exchange
Commission (“SEC”) on February 28, 2018) and in Part II, Item 1A,
“Risk Factors,” of Akorn’s Quarterly Reports on Form 10-Q for the
periods ended March 31, June 30, and September 2018 (as filed with
the SEC on May 2, August 1, and November 6, 2018), and other risk
factors identified from time to time in our filings with the SEC.
Readers should carefully review these risk factors, and should not
place undue reliance on our forward-looking statements. These
forward-looking statements are based on information, plans and
estimates at the date of this report. Akorn undertakes no
obligation to update any forward-looking statements to reflect
changes in underlying assumptions or factors, new information,
future events or other changes.
About Akorn
Akorn, Inc. is a specialty generic pharmaceutical company
engaged in the development, manufacture and marketing of
multisource and branded pharmaceuticals. Akorn has manufacturing
facilities located in Decatur, Illinois; Somerset, New Jersey;
Amityville, New York; Hettlingen, Switzerland and Paonta Sahib,
India that manufacture ophthalmic, injectable and specialty sterile
and non-sterile pharmaceuticals. Additional information is
available on Akorn’s website at www.akorn.com.
Investors/Media:(847)
279-6162Investor.relations@akorn.com
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