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BusinessWire, Thursday, July 16, 1998 at 15:55
LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--July 16, 1998--Akorn, Inc.
(NASDAQ:AKRN) today announced the acquisition from Sidmak
Laboratories, Inc. of its ophthalmic R&D and manufacturing operation,
Advanced Remedies Inc. (ARI) in Somerset, New Jersey.
In late 1997 both companies signed a term sheet giving Akorn
responsibility for the marketing and sales of all products developed
or manufactured by ARI and providing for the completion of an
acquisition agreement between the two companies in late June or early
July.
Akorn purchased all assets and liabilities of ARI from Sidmak
including all ANDA's (Abbreviated New Drug Applications) for any
product previously approved for ARI or under review by the FDA. Akorn
is already promoting one multisource generic product developed at ARI
under the term sheet agreement, Cromolyn Sodium, a mast cell
stabilizer used in the treatment of a wide array of allergic reactions
in the eye. In addition, Akorn will acquire four other multisource
generic products that it currently out sources from other suppliers.
The ARI acquisition provides Akorn with the ability to
manufacture two new dosage forms, ointments and suspensions, that it
does not currently manufacture. At this time, Akorn out sources all of
the ointments and suspensions that it sells. Akorn also expects the
portfolio of new products being developed at ARI to provide it with
new products to sell. Scott Zion, senior vice president and general
manager of the ophthalmic division, said, "The acquisition of the ARI
operation will provide additional revenue from the new products
(ANDA's) that ARI has developed. In addition, the capability to
manufacture many of the ointments and suspensions that we now purchase
from outside suppliers gives us an opportunity to increase
profitability. We believe that the research and development and
manufacturing people at ARI are first rate and will be a tremendous
asset to our organization."
Akorn plans to move production of the Ocusert(R) product line and
technology to the ARI facility. In April, the Company acquired
worldwide rights to the Ocusert line and technology from ALZA
Corporation (NYSE:AZA). Akorn expects to develop additional ophthalmic
products through its new ophthalmic R&D resources at ARI that will
utilize Ocusert's proprietary, controlled release drug delivery
technology.
Akorn, Inc. manufactures and markets sterile ophthalmic and
injectable pharmaceuticals, and markets and distributes an extensive
line of pharmaceuticals and ophthalmic surgical supplies and related
products.
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from anticipated results as a
result of certain risks and uncertainties, including but not limited
to the effects of federal, state and other governmental regulation of
the Company's business; the company's success in acquiring,
developing, manufacturing and marketing new products; the effects of
competition from other pharmaceutical companies; and other risks and
uncertainties identified in the Company's Securities and Exchange
Commission Filings.
This release is available on the KCSA Worldwide Public Relations
Website at www.kcsa.com. |
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