Pfizer To Purchase Akorn-Strides Portfolio

Akorn, Inc.’s joint venture, Akorn-Strides LLC, has entered into a purchase agreement with Pfizer to sell 16 ANDAs and six filed ANDAs. Akorn, Inc. will receive $35 million in cash and Akorn-Strides will continue to manufacture and distribute the approved products until April 30, 2011. In 3Q10, Akorn recognized $1.9 million in revenue as a result of the Akorn-Strides joint venture.

Raj Rai, Akorn’s chief executive officer, said, “This is a positive outcome for Akorn as the proceeds from the sale provide us with immediate access to capital to accelerate our infrastructure improvements, pursue acquisitions and in-licensing of niche pharmaceuticals, as well as strengthen our balance sheet. We would like to thank our joint venture partner, Strides, for helping build value in our joint venture which has resulted in a mutually beneficial strategic outcome.”