Akorn CEO resigns after Fresenius merger collapses
The proposed $4.3bn (€3.7bn) deal had been in discussion since early 2017 but hit the rocks when Fresenius Kabi, a German drugmaker, suggested operational problems at Akorn meant it would no longer follow through with the deal.
The Supreme Court of the State of Delaware ruled in favour of Fresenius, and stated that the firm had no obligation to close its proposed merger with the US generics manufacturer. It also found that Fresenius had properly terminated the merger agreement on April 22, 2018.
Akorn announced on December 7, the same day as the ruling, that its CEO, Raj Rai, had decided to retire and the company would, therefore, be looking to hire someone to fill the position.
The share price of the company has fallen to $4.26, down from $33 after the deal was agreed in April 2017.
In a statement, Alan Weinstein, board chairman, said: “We recognise that this has been an extended period of uncertainty for Akorn’s customers, employees and investors and the board is committed to ensuring the company’s stability and long-term growth.”
Fresenius revealed at the time it cancelled the deal that its decision was based on “material breaches of [US Food and Drug Administration] data integrity requirements relating to Akorn’s operations found during Fresenius’ independent investigation”.