Akorn to acquire VersaPharm for $440 million

Following swiftly on its completion of the acquisition of Hi-Tech Pharmacal (Nasdaq: HITK) for $640 million in cash (The Pharma Letter April 15), US generics drugmaker Akorn (Nasdaq: AKRK) has entered into a definitive agreement to acquire VPI Holdings, the parent company of VersaPharm, for $440 million in cash.

With its shares having been suspended ahead of the announcement, when trading resumed, Akorn’s stock rose 4% to $25.68 on the acquisition news.

VersaPharm, a privately-held developer and marketer of multi-source (generic) prescription drugs, has a focus in the niche therapeutic categories of dermatology, tuberculosis and hemophilia. VersaPharm has built a robust pipeline of over 20 products, including 11 Abbreviated New Drug Application filed with the US Food and Drug Administration, with an addressable IMS market value of over $700 million. VersaPharm’s expertise in developing topical products complements Akorn’s recently acquired manufacturing platform through the merger with Hi-Tech Pharmacal, the company noted.