• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Drug Delivery Business

  • Clinical Trials
  • Research & Development
  • Drug-Device Combinations
  • FDA
  • Pharmaceuticals
  • Policy

Fresenius abandons $4.3B Akorn merger, citing data integrity probe

April 23, 2018 By Sarah Faulkner

Fresenius KabiFresenius (ETR:FRE) is walking away from a $4.3 billion merger with U.S. generic drugmaker, Akorn Inc. (NSDQ:AKRX), citing an investigation that found material breaches of FDA data integrity requirements relating to Akorn’s operations.

Fresenius said in a statement that it offered to delay its decision to give Akorn time to compete its own investigation, but Akorn turned the offer down.

In its own prepared remarks, Akorn countered Fresenius’ claims that the drugmaker failed to fulfill closing terms, arguing that the issues being probed weren’t a condition to closing.

“We intend to vigorously enforce our rights, and Fresenius’s obligations, under our binding merger agreement,” the company said.

Since Fresenius’ chief executive, Stephan Sturm, took over the company’s corner office in June last year, he has made takeovers a key part of his strategy. Fresenius also bought a Spanish hospital chain for 5.8 billion euros in September of 2016.

The company’s Akorn merger was an attempt to move into new dosage forms and therapeutic areas for its Kabi unit, which develops generic infusion drugs and blood transfusion supplies. Akorn’s portfolio includes ophthalmic drugs, ear drops, nasal sprays, respiratory drugs and medical creams.

Following the news that Fresenius intends to abandon its deal with Akorn, the drugmaker filed a complaint with the Delaware Chancery Court, demanding that Fresenius be required to follow through with the agreement.

“Fresenius’ attempt to terminate the transaction on the pretext that the findings from the ongoing investigation are a breach of the merger agreement is completely without merit. The previously disclosed ongoing investigation, of which we have voluntarily notified and are in regular communication with the Food and Drug Administration, has not found any facts that would result in a material adverse effect on Akorn’s business and therefore there is no basis to terminate the transaction,” the company said.

Want to stay on top of DDBN content? Sign up for our e-mail newsletter for a weekly dose of drug-device news.

Filed Under: Featured, Mergers & Acquisitions, Pharmaceuticals, Wall Street Beat Tagged With: Akorn, Fresenius

IN CASE YOU MISSED IT

  • BD, Mitsubishi Gas Chemical partner on better materials for plastic syringes
  • ApiJect picks up $111M investment from Royalty Pharma, Jefferies
  • FDA approves IND for Ananda Scientific’s PTSD treatment with liquid structure delivery tech
  • Medtronic’s Resolute Onyx drug-eluting stent demonstrates strong safety, efficacy
  • Jabil launches Qfinity reusable auto-injector

Primary Sidebar

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
Need Drug Delivery Business News in a minute? We Deliver!
Drug Delivery Enewsletters get you caught up on all the mission critical news you need in med tech. Sign up today.

Signup for the newsletter

Footer

Drug Delivery Business News Logo

MassDevice Medical NETWORK

MassDevice
DeviceTalks
Medical Tubing & Extrusion
Medical Design & Outsourcing
MedTech 100 Index
Drug Discovery & Development
Pharmaceutical Processing World
Medical Design Souring
R&D World

DRUG DELIVERY BUSINESS NEWS

Subscribe to Drug Delivery’s E-Newsletter
Advertise with us
About
Contact us
Privacy
Listen to our Weekly Podcasts
Add us on FacebookFollow us on TwitterConnect with us on LinkedIn

Copyright © 2022 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Advertise | Privacy Policy | RSS