Akorn once again tried and failed to salvage its $4.3 billion merger with Fresenius. Delaware’s top court ruled that Fresenius had nixed the deal legally after data problems cropped up, and in the wake of the decision, Akorn’s CEO made his exit.
Only days after lawyers for Akorn and Fresenius argued in Delaware Supreme Court, the justices backed a lower court’s decision in Fresenius’ favor. With the ruling, Akorn CEO Raj Rai said he would step down.
The decision follows months of legal back-and-forth over the $4.3 billion deal inked last year. Fresenius agreed to pay $34 per share for the company, but after an investigation turned up data integrity problems at Akorn, Fresenius backed out. Akorn’s shares have fallen more than 85% since February.
Akorn sued to save the deal, and after a lower court ruled for Fresenius in October, appealed to Delaware’s top court. Last week, Akorn lawyers contended that Fresenius knew the risks of the buyout and should be forced to proceed. Fresenius’ attorney pushed back, saying investigators found more problems at every turn at Akorn.
With the court’s decision, Akorn will forge ahead as an independent company; the drugmaker said Rai is retiring and will stay with the company until it can find a successor.
Akorn Chairman Alan Weinstein said the company recognizes “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.”
Amid the legal battle, Akorn’s share price has tumbled to about $4.25, from about $33 last year.
When Fresenius struck the buyout, it touted the acquisition as a “strategically complementary combination” that would diversify its portfolio and expand its sterile manufacturing capacity. The buy would add three U.S. manufacturing sites to Fresenius’ network, plus another in India, and about 2,000 employees.
By Eric Sagonowsky
Source: Fierce Pharma
Giovanni Caforio, the former CEO of Bristol Myers Squibb, is set to become the next board chairman of Novartis, which on Tuesday proposed the pharmaceutical industry veteran as its pick to replace Joerg Reinhardt in the role next year. Reinhardt has served as Novartis’ chair since 2013 and plans to retire when his 12-year term ends in 2025.
GE HealthCare has raised the curtain on two ultrasound systems equipped with artificial intelligence programs designed to assist in diagnosing conditions in women’s health, including obstetric exams. The Voluson Signature 20 and 18 imaging systems include AI tools capable of automatically identifying and annotating measurements of fetal anatomy.
Scientists from the University of Edinburgh’s School of Chemistry have revealed a new sustainable method of manufacturing complex molecules that could reduce waste produced during drug production. The method published in Nature Chemistry could help to prevent severe side effects caused by drugs that can exist as enantiomers.
