Fresenius Ends Deal to Buy Akorn, Which Pledges a Fight
23 April 2018 - 7:54AM
Dow Jones News
By Colin Kellaher
Fresenius SE on Sunday said it is terminating its $4.3 billion
agreement to buy generic-drug maker Akorn Inc., but Akorn said they
intend to see the deal go through.
The deal, struck last April, has been under a shadow since
February, when Fresenius said it was looking into possible
product-development data breaches at Akorn.
Fresenius on Sunday said Akorn has failed to fulfill several
closing conditions of the deal, and that it found material breaches
of Food and Drug Administration data-integrity requirements
relating to Akorn's operations during its independent
investigation.
The German health-care company said it offered to delay its
decision to walk away from the deal to give Akorn more time to
complete its own investigation, but that Akorn declined the
offer.
Akorn, however, said it "categorically" disagrees with
Fresenius' claims, and that the investigation isn't a condition to
the deal closing.
Akorn said the investigation hasn't found any facts that would
result in a material adverse effect on its business, so Fresenius
has no basis to terminate the transaction.
"We intend to vigorously enforce our rights, and Fresenius'
obligations, under our binding merger agreement," the Lake Forest,
Ill., company said.
Shares of Akorn closed Friday at $19.70, about 42% below the $34
a share Fresenius agreed to pay for the company.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
April 22, 2018 17:39 ET (21:39 GMT)
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