Akorn Shares Gaining On $41 Million Sale Of Branded Drugs Unit To Valeant
Akorn (NASDAQ: AKRX) sold its branded drug unit for $41 million and saw its shares gain nearly four percent Friday morning.
The unit, ECR Pharmaceuticals, went to Valeant Pharmaceuticals (NYSE: VRX) for a combination of $41 million cash and debt, Akorn said.
ECR was part of Akorn's $640 million acquisition of Hi-Tech Pharmacal about a year ago.
Chief Executive Raj Rai said the unit is a "solid platform" but not "a strategic fit" with Akorn's model of of focusing on niche dosage forms.
Akorn, which posted first-quarter revenue of $90.6 million, will update 2014 guidance in an earnings conference call in August.
Akorn shares traded recently at $29, up 3.45 percent.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.