Akorn Inc (NASDAQ:AKRX) has received FDA approval for a nasal spray aimed at treating allergies, boosting Akorn stock over 10%.
Akorn is a leading specialty generic pharmaceutical company based in Amityville, New York that develops, manufactures, and markets generic and branded prescription pharmaceuticals as well as animal and consumer health products. The announcement comes as welcome news for Akorn stock, which hasn’t been having a great time as of late. Having been valued as high as $33.05 early last year, the company’s shares have dropped off dramatically, having lost over 90% since then.
Last year, the pharmaceutical firm was subject to a takeover by the German company Fresenius (OTCQX:FSNUF); however, the latter subsequently walked away from the $4 billion USD acquisition, which then sent Akorn shares tumbling over 30% in the space of a week. The acquisition was terminated in light of evidence that showed Akorn’s misconduct in reporting drug development data to US regulators. Akorn then attempted to sue Fresenius for backing out; however, this was overruled by a Delaware judge and led to more misery for Akorn stock.
The case was considered a landmark one by Larry Hamermesh, a professor at Delaware Law School in Wilmington. Judge Travis Laster, who oversaw the case, said Fresenius had uncovered a “magnitude of inaccuracies” in Akorn’s regulatory compliance and subsequently “responded to a dramatic, unexpected, and company-specific downturn in Akorn’s business that began in the quarter after signing.”
In December, Akorn’s Chief Executive Officer Raj Raj announced he would retire from the position after the debacle left Akorn stock sitting close to an all-time low. Investors will be hoping that today’s announcement signals an upturn in fortunes for Akorn shares, particularly given that IQVIA (NYSE:IQV), a clinical research firm, valued Azelastine Hydrochloride Nasal Spray sales at approximately $18 million USD last year, which allows the company access to a promising market.
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