Fresenius Investigates Akorn FDA Compliance, Says Outcome May Affect Merger

What Happened

Akorn, Inc. AKRX shares fell more than 30 percent Monday evening after Fresenius Kabi AG announced an independent investigation into alleged breaches of FDA data integrity requirements related to product development.

Akorn later released a statement confirming its active participation in the probe.

Why It’s Important

The outcome of the investigation may derail a deal between the companies that saw Fresenius buying Akorn for $34 per share. The acquisition was announced in April 2017 and has yet to close.

Akorn assured investors that the transaction should continue as planned.

“To date, the Company's investigation has not found any facts that would result in a material impact on Akorn's operations and the Company does not believe this investigation should affect the closing of the transaction with Fresenius,” the statement read.

What’s Next

Fresenius noted that it will not provide updates throughout the investigation, but it will continue to seek regulatory clearance for the merger from the Federal Trade Commission.

At time of publication, Akorn shares had marginally recovered and were set to open down 28.7 percent around $21.60.

Related Links:

An Unusual Options Trade Prior To Akorn Takeout Chatter

The Week Ahead In Biotech: Earnings, PDUFA Dates And More

Posted In: NewsFDALegalM&ATop StoriesMoversTrading IdeasFreseniusFresenius Kabi AG
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...