Akorn reconciles to court verdict, CEO steps down over failed Fresenius buyout

Akorn reconciles to court verdict; CEO steps down over failed Fresenius buyout

By PharmaCompass

2018-12-13

Impressions: 146 Article

In October, German drugmaker Fresenius Kabi had won a case in the Delaware Court of Chancery wherein the court upheld Fresenius’ decision to terminate its agreement to merge with Akorn because of data integrity issues at the latter’s facilities.

Last week, Akorn said it will move forward and rebuild shareholder value as an independent company, following the decision from the Supreme Court of the State of Delaware.

Fresenius had agreed to acquire Akorn in April 2017, for approximately US$ 4.3 billion. The transaction was expected to close in early 2018. In March this year, Fresenius’ CEO Stephan Sturm had said the company may back out of its planned acquisition of Akorn if an independent probe into data integrity at Akorn yields evidence of wrongdoing. And in April this year, Fresenius abandoned the deal. Akorn sued to save the deal, but lost out in both the lower court and in Delaware’s top court.

Post the ruling, Akorn CEO Raj Rai said he would step down. With the litigation process concluded, Akorn’s board of directors announced it is engaged in a formal search for a new CEO to lead the company into its next phase. Rai has decided to retire, but will assist the board to ensure smooth transition. He will also remain in his role until the hiring date of the new CEO.

Akorn has said that despite misleading allegations made during the litigation process to damage its reputation among various stakeholders, it has received several new Abbreviated New Drug Application approvals from the FDA.

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