Akorn Shares Gaining On $41 Million Sale Of Branded Drugs Unit To Valeant

Akorn 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 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.