Akorn Buys Three Branded Ophthalmic Products From Merck For $52.8 Mln In Cash

(RTTNews) - Akorn Inc. (AKRX) announced Friday that it has acquired from Merck (MRK), the U.S. rights to three branded ophthalmic products, including those product rights obtained through the acquisition of Inspire Pharmaceuticals, Inc., a subsidiary of Merck, for $52.8 million in cash. Products included in this transaction are AzaSite, COSOPT and COSOPT PF.

In addition, Akorn said it has signed a two-year supply agreement with Merck as well as a transition services agreement with customary terms. Akorn plans to ship COSOPT® and COSOPT PF immediately upon close and expects to begin shipping AzaSite® in the first quarter of 2014.

Akorn expects that the transaction will add about $34 million to $38 million in revenues and about $0.09 to $0.11 of non-GAAP adjusted net income per share in 2014.

According to Akorn, the addition of these branded products to Akorn's ophthalmic portfolio is expected to elevate Akorn's reputation with prescribers and leverage Akorn's existing ophthalmic sales force and physician relationships. This strategic acquisition is also expected to provide a platform to support future acquisitions and in-licensing of branded ophthalmic products.