Akorn buy of Hi-Tech Pharmacal delayed by FTC request

In a filing with the US Stock Exchange Commission, USA-based niche generics firm Akorn (Nasdaq: AKRX) announced that it, and takeover target Hi-Tech Pharmacal (Nasdaq: HITK), as expected, had each received a request for additional information (commonly referred to as a “second request”) from the US Federal Trade Commission in connection with the proposed merger transaction between Akorn Enterprises, wholly owned subsidiary of Akorn, and Hi-Tech (The Pharma Letter August 27).

The companies have been cooperating with the FTC staff since shortly after the announcement of the $640 million transaction and intend to continue to cooperate with the FTC to obtain clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR) as promptly as possible.

The effect of the second request is to extend the HSR waiting period until 30 days after the companies have substantially complied with the request, unless that period is terminated sooner by the FTC. The parties continue to expect that, subject to approval of Hi-Tech’s stockholders, the transaction will be completed in the first quarter of 2014 (rather than fourth-quarter 2013 as previously anticipated) following completion of the HSR clearance process