LAKE FOREST, Ill., Feb. 10, 2020 /PRNewswire/ -- Akorn, Inc.
(Nasdaq: AKRX), a leading specialty pharmaceutical company, today
confirmed that negotiations with certain of its lenders are ongoing
following the expiration of its standstill agreement on
February 7, 2020. Akorn continues to
evaluate strategic alternatives to address the Company's
litigation-related liabilities and position Akorn for
long-term success.
About Akorn
Akorn, Inc. is a specialty
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.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking
statements, including statements regarding ongoing negotiations
with certain lenders and the evaluation of strategic alternatives
to address the Company's litigation-related liabilities and
position Akorn for long-term success. When used in this document,
the words "will," "target," "expect," "continue," "believe," "seek,
"anticipate," "estimate," "intend," "could," "would," "strives" 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 the Company 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 Delaware Court of Chancery's
October 1, 2018 decision against the
Company and the Delaware Supreme Court's December 7, 2018 order affirming the Chancery
Court's decision on the Company'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 against the defendants or 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 the Company, with the assistance of
outside consultants, into alleged breaches of FDA data integrity
requirements relating to product development at the Company and any
actions taken by the Company, 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, (vii) the Company's significant indebtedness and obligation
to comply with the covenants
and other obligations under its debt
agreements, (viii) risks related to
the expiration of its standstill agreement on February 7, 2020 and lenders' rights under the
Company's debt agreements, (ix) the Company's
exploration of strategic alternatives, including the alternatives
of seeking to restructure its indebtedness and/or implement a
strategic transaction (including a sale of its assets) with the
protections of a filing under Chapter 11 of the U.S. Bankruptcy
Code, (x) the risk that the holders of a significant number of
shares have opted out of and elected not to participate in or be
bound by the settlement agreement with the putative class members
in the pending securities class action (the "Settlement
Agreement"), (xi) the risk that the Settlement Agreement may not
obtain the necessary approval by the court or may be terminated in
accordance with its terms, (xii) the risk that insurance proceeds,
common shares or other consideration contemplated to be exchanged
pursuant to the proposed settlement is not available at the
appropriate time and (xiii) such other risks and uncertainties
outlined in the risk factors detailed in Part I, Item 1A, "Risk
Factors," of the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2018
(as filed with the Securities and Exchange Commission ("SEC") on
March 1, 2019) and in Part II, Item
1A, "Risk Factors," of the Company's Quarterly Reports on Form 10-Q
for the fiscal quarters ended March 31,
2019 (as filed with the SEC on May 9,
2019), June 30, 2019 (as filed
with the SEC on August 2, 2019) and
September 30, 2019 (as filed with the
SEC on October 31, 2019) and other
risk factors identified from time to time in the Company's filings
with the SEC. Readers should carefully review these risk factors,
and should not place undue reliance on the Company's
forward-looking statements. These forward-looking statements are
based on information, plans and estimates at the date of this
Current Report on Form 8-K. The Company undertakes no obligation to
update any forward-looking statements to reflect changes in
underlying assumptions or factors, new information, future events
or other changes.
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SOURCE Akorn, Inc.