Ophthalmology M&A Engine Keeps Roaring As Akorn Buys Out Hi-Tech

27 Aug 2013

CEO Raj Rai calls the transaction a “transformative event” for Akorn that will be instantly accretive and produce between $15 million and $20 million of run-rate synergies within 12 months. Acquisition of Hi-Tech adds prescription and OTC products, 18 filed ANDAs and increased manufacturing capability.

With Novartis AG and Valeant Pharmaceuticals International Inc. leading a recent spree of ophthalmology company buyouts in the braded market, the generics sector is not to be outdone. Specialty pharma Akorn Inc. announced plans to increase its portfolio, pipeline and manufacturing capabilities by purchasing Hi-Tech Pharmacal Co. Inc. for $650 million Aug. 27. The deal will bring a broad range of generic and prescription and over-the-counter products, including eye drops, to Akorn.

The deal will render Akorn the third-largest generic ophthalmology drug firm in the U.S. In a conference call, CEO Raj...