It was announced on April 4 via Bloomberg and beyond that Apollo / CVC were looking to buy the prescription drugs business of Perrigo. All of this may be helpful to Akorn which previously escaped the clutches of Fresenius, and then saw its CEO retire and be replaced by Douglas Boothe.
He was previously the Executive Vice President and General Manager of Perrigo. What could be salvation for Akorn is if Perrigo with a war chest of $2.5bn from a sale of its prescription drugs business, is that it would then have plenty of cash to spare, could make a play for the generics drugs business of Akorn. Clearly, the links between the two companies are helpful. Indeed, Perrigo has the cash to decide between buying part or all of Akorn in order to acquire the target business it wants. Either way, given the debt Akorn is burdened with, and how its market cap is being held down in the interim, either a part or whole purchase of Akorn would be attractive.
Give the poor performance of Akorn shares, anything which ends the recent drift has to be regarded as positive. Indeed, the generic drugs part of Akorn could fetch more than the present market cap of less than $500m.
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