This week's biggest % winners & losers : Oct 1 - 5, 18 (wk 40)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare: AMRN (19.8 +21.7%), PRTK (11.6 +19.59%), COLL (17.08 +15.88%), DERM (12.43 +14.04%)
• Industrials: GOL (6.41 +17.4%), GE (13.18 +16.74%), RECN (18.96 +14.22%)
• Consumer Discretionary: BKS (6.95 +19.83%)
• Information Technology: EEFT (116.84 +16.58%)
• Financials: ITG (27.94 +28.99%), BSBR (10.22 +16%)
• Energy: NAT (2.41 +15.31%), PBR (13.91 +15.24%)
• Utilities: CIG (2.18 +27.49%), EBR (4.86 +24.94%), ELP (6.18 +17.27%), SBS (6.81 +15.42%)

This week's top 20 % losers

• Healthcare: AKRX (5.96 -54.08%), OMER (13.97 -42.77%), LMAT (28.53 -26.36%), MNTA (21.27 -19.13%), CYH (2.8 -19.08%), ADRO (5.95 -19.05%), PACB (4.38 -19.04%)
• Materials: CENX (9.97 -16.71%)
• Industrials: AYI (130.99 -16.67%)
• Consumer Discretionary: DLPH (26.01 -17.06%), EDU (61.46 -16.96%), GIII (40.23 -16.52%)
• Information Technology: SMCI (12.4 -39.86%), RTEC (19.67 -19.55%), NANO (30.71 -18.15%)
• Energy: REI (8.19 -17.36%)

Akorn (AKRX) : Judge rules for Fresenius in bid to end $4.8 billion Akorn deal

• Sep 2, 2020:  Akorn Inc. has announced the United States Bankruptcy Court for the District of Delaware has approved its sale to the company's existing lenders. The company filed for bankruptcy protection in May 2020.
• Update May 27, 2020 : Akorn Inc. (AKRX) has filed for Chapter 11 bankruptcy.
• The German healthcare company Fresenius Kabi backed out of a $4.75 billion deal in 2018 amid allegations that Akorn's “representations regarding its compliance with regulatory requirements were not true and correct" and because of the "magnitude of the inaccuracies." 

*****

 

WILMINGTON, Del (Reuters) - A Delaware judge ruled on Monday that German healthcare group Fresenius SE (FREG.DE) could walk away from its $4.75 billion deal for U.S. drugmaker Akorn Inc (AKRX) and rejected Akorn's claim that the merger agreement had been breached.

Delaware Vice Chancellor Travis Laster said Fresenius validly terminated the merger agreement and he found Akorn's representations regarding its compliance with regulatory requirements were "not true and correct."

** charts after  **

 

Akorn (AKRX): Fresenius walks away from deal

• The German company said its outside experts found “material breaches” of FDA standards while reviewing Akorn's operations.

Akorn: Fresenius (FSNUY) to terminate merger agreement with Akorn due to Akorn's failure to fulfill several closing conditions 

Fresenius' decision is based on, among other factors, material breaches of FDA1 data integrity requirements relating to Akorn's operations found during Fresenius' independent investigation. Fresenius offered to delay its decision in order to allow Akorn additional opportunity to complete its own investigation and present any information it wished Fresenius to consider, but Akorn has declined that offer.

• Fresenius confirms its guidance for 2018. The Group continues to expect a sales growth of 5% to 8% in constant currency. Group net income is expected to increase by 6% to 9%4 in constant currency (excluding expenditures for the further development of the biosimilars business around 10% to 13%5).
• Akorn responded to the announcement saying, "We categorically disagree with Fresenius' accusations. The previously disclosed ongoing investigation, which is not a condition to closing, has not found any facts that would result in a material adverse effect on Akorn's business and therefore there is no basis to terminate the transaction. We intend to vigorously enforce our rights, and Fresenius' obligations, under our binding merger agreement."

** charts before  **

 

Akorn (AKRX) : Fresenius may back out of deal if probe finds breaches

• BAD HOMBURG, Germany (Reuters) - Fresenius (FREG.DE) may back out of the planned acquisition of Akorn (AKRX) if its probe into data integrity at the U.S. maker of liquid generic drugs yields evidence of wrongdoing, the German healthcare group's chief executive said.

 

Fresenius (FSNUY) says conducting independent investigation into alleged breaches of FDA data integrity requirements relating to product development at Akorn 
The Management and Supervisory Boards of Fresenius will assess the findings of that investigation. The consummation of the transaction may be affected if the closing conditions under the merger agreement are not met. Fresenius does not intend to provide further updates as the investigation proceeds. Fresenius continues to seek FTC clearance.

Akorn issues statement - does not believe the investigation should affect the closing of the transaction with Fresenius (FSNUY)
"Akorn and Fresenius Kabi AG, with the assistance of outside consultants, are investigating alleged breaches of FDA data integrity requirements relating to product development at the Company. To date, the Company's investigation has not found any facts that would result in a material impact on Akorn's operations and the Company does not believe this investigation should affect the closing of the transaction with Fresenius. The Company does not intend to provide further updates as the investigation proceeds. The Company is continuing to work to obtain regulatory clearance for the transaction."

** charts before **

 

=Akorn (AKRX) to be acquired by Fresenius for $4.3 billion

  

DECATUR, Ill. (WAND) -  Akorn Inc, with operations in Decatur has been acquired by a German Company.

Late Monday, Fresenius SE announced the acquisition of Akorn, Inc. for $4.3 billion at $34 per share for the Illinois based generic drug maker. Fresenius will get a stronger foothold in the U.S.

The German company CEO says, "Akorn will bring us additional U.S. market access to small and mid-sized clinics and retail pharmacies."

Akorn will complement Fresenius’s Kabi medicines unit, which specializes in intravenous drugs.

The acquisition still needs approval from Akorn shareholders. If approved, it will mark two of the biggest deals for the European company.

Akorn has two facilities in Decatur and recently expanded.  According to a news release from Fresenius Kabi:

The U.S. headquarters for Akorn and Fresenius Kabi are both in Northern Illinois, located in close proximity. Akorn employs more than 2,000 people worldwide. Fresenius Kabi employs more than 30,000 worldwide.

Fresenius Kabi has a successful track record of growing pharmaceutical acquisitions in the United States. Fresenius Kabi acquired APP Pharmaceuticals in 2008 and has more than tripled its sales to nearly $2 billion. The company acquired the Simplist™ line of prefilled syringes from BD last year and has already doubled the sales of this portfolio.

Fresenius Kabi’s financial advisers for the transaction were Credit Suisse and Moelis, with Allen & Overy acting as its primary legal adviser. J.P. Morgan Securities LLC served as Akorn’s financial adviser, and Cravath, Swaine & Moore LLP and Polsinelli PC served as its legal advisers.

Great trade : AKRX +24% (4/17)

a  4/5; 10, 22, 26, 83  (vol 2.6M)
b  4/6: 3  (vol. 3.1M)

4/10:  AKRX confirms discussions with Fresenius SE's (FSNUY) Fresenius Kabi concerning a potential acquisition of Akorn

   

• 4/10:  AKRX confirms discussions with Fresenius SE's (FSNUY) Fresenius Kabi concerning a potential acquisition of Akorn

 

Akorn (AKRX) reported earnings on Wed 1 March 17 (b/o)

** charts after earnings **

 

Akorn beats by $0.01, misses on revs; guides FY17 revs below consensus :

• Reports Q4 (Dec) earnings of $0.58 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.57; revenues rose 1.3% year/year to $283.7 mln vs the $287.91 mln Capital IQ Consensus.
• Co issues downside guidance for FY17, sees FY17 revs of $1.01-1.06 bln vs. $1.12 bln Capital IQ Consensus Estimate.
  • Akorn's guidance includes $30 to $60 million from new product launches of products already approved and those expected to be approved in 2017.
    • The Company expects the majority of these revenues will be generated in the second half of the year.
  • Ephedrine Sulfate Injection. Akorn's guidance contemplates two competitors for the remainder of 2017 and that Akorn will retain 30%-35% of the market.

AKRX — is it a buy?

• Dec. 12: Is AKRX a buy? 

• 3 months later: