Wednesday, August 3, 2011

Akorn Inc. (AKRX) Posts Q1 Figures, Updates Outlook to Reflect Pending Acquisition

Akorn Inc., a niche generic pharmaceutical company, reported financial results for the first quarter of 2011, reflecting inclusion of revenues from the company’s Akorn-Strides LLC joint venture.

Consolidated revenue for the first quarter of 2011 increased 24 percent to $25.4 million compared to consolidated revenue of $20.5 million for the first quarter of the year prior. First quarter 2011 core business revenue was $25.4 million, up 66 percent over the 2010 first quarter core revenue of $15.3 million.

First quarter 2011 included $1.0 million in revenue and $1.1 million in net income from Akorn’s participation in the Akorn-Strides joint venture. The company noted that all joint-venture sales activities ended in April. The remaining joint-venture abbreviated new drug approvals (ANDAs) were transferred to Pfizer as previously announced on December 29, 2010. Akorn will recognize its share of the gain on the transfer of the remaining ANDAs I n the second quarter 2011.

Consolidated gross margin for the first quarter of 2011 was 56 percent compared to 41 percent in the first quarter of 2010.

Net income for the first quarter of 2011 was $5.8 million, or $0.06 per diluted share, compared to a net income of $3.5 million, or $0.04 per diluted share, in the prior year quarter.

The company also announced its plans to acquire Advanced Vision Research Inc., a leading player in the over-the-counter dry eye market with annual sales of approximately $20.0 million in 2010, both domestic and international.

“These are exciting times for Akorn. We are evaluating other acquisition opportunities that are complementary to our existing business. With the continued strength in our base business and the opportunities to grow through our internal R&D efforts, we feel optimistic about the long term growth prospects for our company,” Raj Rai, Akorn CEO stated in the press release.

The company revised its 2011 outlook to include the pending acquisition of AVR. The company now projects 2011 revenue in the range of $106 million to $110 million; AVR is expected to add approximately $12.0 million to 2011 revenues.

For more information visit www.akorn.com

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