Supplier News Breaks Archives
Akorn set to acquire VersaPharm
May 9th, 2014
LAKE FOREST, Ill. – Akorn Inc. plans to buy VPI Holdings Inc., the parent of multisource prescription drug manufacturer VersaPharm Inc., in a $440 million cash deal.
Akorn said Friday that the acquisition will expand its presence in the niche dermatology market.
The company noted that VersaPharm's expertise in developing topical products complements Akorn's recently acquired manufacturing platform from its purchase of Hi-Tech Pharmacal. VersaPharm also focuses on the niche therapeutic categories of tuberculosis and hemophilia.
"This acquisition is a highly strategic fit with the recently acquired Hi-Tech platform as well as Akorn's focus on niche dosage forms," stated Raj Rai, Akorn's chief executive officer. "Our acquisition strategy will have resulted in doubling our revenues and product portfolio in a short period of time. With this acquisition, we have further diversified our portfolio. We are also very excited about VersaPharm's robust pipeline that will further accelerate our company's long-term growth opportunities."
According to Akorn, which makes multisource and branded pharmaceuticals, VersaPharm has a robust pipeline of over 20 products, including 11 abbreviated new drug applications (ANDAs) filed with the Food and Drug Administration, with an addressable IMS market value of over $700 million.
"With the support of our equity partner, Tailwind Capital, and through the efforts of our dedicated employees, VersaPharm has generated exceptional growth since we acquired the company in 2007," VersaPharm CEO Kevin Connelly commented. "Akorn is a great fit for VersaPharm to realize the full potential of our dermatology-focused product pipeline and continue to meet the needs of our customers. We look forward to working with Raj Rai and his team to support the success of the combined entity.”
Akorn said it expects to close the transaction in the third quarter.