Reports indicate that generics drug manufacturer Akorn, Inc. (NASDAQ:AKRX) has entered talks with Fresenius SE, Europe’s largest healthcare provider that is publicly traded. Both companies have confirmed the talks though a deal is not certain as the board of directors of both firms would have to provide their approval before both firms can get into a formal deal though.
Fresenius has recently been on an acquisition spree as a few months ago it purchased IDC Salud Holding, a hospital operator based in Spain at a price of approximately $6.11 billion which made it the Germany-based firm’s biggest-ever acquisition. This was soon after the current chief executive officer, Stephan Sturm, begun his tenure.
Organic growth and acquisitions
If Frenesius’ bid to acquire Akorn Pharmaceuticals were to go through, the latter would be under Fresenius Kabi, the unit of Fresenius SE that manufactures medical devices, clinical nutrition products, infusion therapies and generic drugs. Sturm has previously made it clear that Fresenius Kabi’s expansion strategy would involve both acquisitions and organic growth.
In 2016, Akorn’s revenues stood at $1.1 billion largely from such generic pharmaceuticals as eye-care treatments that are sold over the counter, inhalants and nasal sprays. Besides production facilities in the United States, Akorn Pharmaceuticals also has manufacturing plants in India and Switzerland. Data from late 2015 showed that the generic drugs maker had an employee count of 2,200 people spread across the world. A large proportion of the workforce is based in the United States.
Asia and Europe
In the United States, Akorn’s production facilities are located in Amityville in New York, Somerset in New Jersey and Decatur in Illinois. Akorn’s manufacturing plant in India is in Paonta Sahib while its Swiss production facility is in Hettlingen. Besides generic drugs, Akorn Therapeutics also makes some branded drugs and this includes Akten, a therapy for heart conditions and Xopenex, a treatment for asthma.
If the deal were to succeed, it would come eight years after the current chief executive officer of Akorn, Raj Rai led the firm in a successful turnaround.
On Tuesday shares of Akorn Inc rose by 0.80% to close the day at $32.76.
