Akorn sues Fresenius Medical: US-based drug manufacturing company Akorn Inc. (NASDAQ:AKRX) has sued German-based Fresenius Kabi AG, a subsidiary of Fresenius Medical Care Ag (NYSE:FMS), in a Delaware court on Monday, citing that Fresenius failed to fulfill its obligations under the merger agreement they had made.
This action comes one day after Fresenius announced that it would be terminating the merger agreement with Akron.
After Fresenius issued their statement regarding the termination on Sunday, Akorn released a quick statement saying they “categorically disagree with Fresenius’ accusations.”
Fresenius has said that an independent investigation, by Fresenius, into Akorn discovered that the American company did not follow data integrity requirements of the US Food and Drug Administration (FDA).
Akorn has said that Fresenius’ decision is “a breach of the merger agreement is completely without merit.”
According to Akorn, the investigation in question “has not found any facts that would result in a material adverse effect on Akorn’s business,” which they believe does not give Fresenius any basis to terminate the agreement.
The US company has also stated that Fresenius must obtain approval from the Federal Trade Commision.
Akorn plans to “vigorously enforce [their] rights, and Fresenius’ obligations.”
The merger was announced in April 2017 and would have had Fresenius purchase Akorn for $34.00 USD per share, or $4.3 billion. The purchase was also approved by a majority of Akorn shareholders both boards of directors.
Shares of Akorn fell nearly 30% Monday morning, to approximately $14.00. The company’s previous closing value on Friday was $19.70. Akorn has already reached a low of $12.40, which is a new 52-week low.
Shares of Fresenius also fell approximately 5% Monday and were hovering near the $50.00 range, as of 1:00pm (EDT).
Featured Image: Twitter