Akorn Provides Update on Sale Process
LAKE FOREST, Ill., April 1, 2020 /PRNewswire/ -- Akorn, Inc. (Nasdaq: AKRX), a leading specialty pharmaceutical company, today announced that it no longer has any bids in the Sale Process that are sufficient to pay all obligations under its term loan agreement. Accordingly, the Company now toggles to the alternative milestones that were detailed in the Second Amended Standstill Agreement and are summarized in the 8-K filed earlier today.
Doug Boothe, Akorn's President and Chief Executive Officer, commented, "Unfortunately, our sale process has been negatively impacted by the broader market uncertainties related to the COVID-19 crisis. However, we are working closely with our lenders to determine the best path forward to ensure that the Company is positioned for long-term success."
"We remain confident in the fundamental strength of Akorn's business. Our commitment to patients, customers and communities is unwavering as we work to fulfill our mission which, now more than ever, is critical for those we serve. We continue to work tirelessly to improve patients' lives through the quality, availability and affordability of our products."
The Company plans to continue to operate as usual, including delivering safe and effective pharmaceutical products to customers and fulfilling contractual obligations, including payments to vendors.
Akorn, Inc. is a specialty pharmaceutical company engaged in the development, manufacture and marketing of multisource and branded pharmaceuticals. Akorn has manufacturing facilities located in Decatur, Illinois; Somerset, New Jersey; Amityville, New York; Hettlingen, Switzerland and Paonta Sahib, India that manufacture ophthalmic, injectable and specialty sterile and non-sterile pharmaceuticals. Additional information is available on Akorn's website at www.akorn.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes statements that may constitute "forward-looking statements," including expectations regarding the Company's business, the path and milestones for executing a sale of the Company's business, potentially through the filing of Chapter 11 cases under the U.S. Bankruptcy Code, the Company's continued engagement in discussions with the Standstill Lenders regarding the Sale Process and other statements regarding the Company's plans and strategy. When used in this document, the words "will," "expect," "continue," "believe," "anticipate," "estimate," "intend," "could," "strives" and similar expressions are generally intended to identify forward-looking statements. These statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. A number of important factors could cause actual results of the Company and its subsidiaries to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to: (i) the effect of the Delaware Court of Chancery's October 1, 2018 decision against the Company and the Delaware Supreme Court's December 7, 2018 order affirming the Chancery Court's decision on the Company's ability to retain and hire key personnel, its ability to maintain relationships with its customers, suppliers and others with whom it does business, or its operating results and business generally, (ii) the risk that ongoing or future litigation against the defendants or related to the Chancery Court's decision and Delaware Supreme Court's affirmation may result in significant costs of defense, indemnification and/or liability, (iii) the outcome of the investigation conducted by the Company with the assistance of outside consultants, into alleged breaches of FDA data integrity requirements relating to product development at the Company and any actions taken by the Company, third parties or the FDA as a result of such investigations, (iv) the difficulty of predicting the timing or outcome of product development efforts, including FDA and other regulatory agency approvals and actions, if any, (v) the timing and success of product launches, (vi) difficulties or delays in manufacturing, (vii) the Company's increased indebtedness and compliance with certain covenants and other obligations under the Amended Standstill Agreement, which create material uncertainties and risks to its growth and business outlook, (viii) the Company's obligation under the Amended Standstill Agreement to pay certain fees and expenses and increased interest margin, (ix) the Company's exploration of strategic alternatives, including the alternatives of seeking to restructure its indebtedness and/or implement a strategic transaction (including a sale of its assets) with the protections of a filing under Chapter 11 of the U.S. Bankruptcy Code, (x) the risk that the insurance proceeds, common shares or other consideration to be delivered pursuant to the settlement agreement entered into and approved by the court in connection with the previously disclosed securities class action is not available at the appropriate time and (xi) such other risks and uncertainties outlined in the risk factors detailed in Part I, Item 1A, "Risk Factors," of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (as filed with the Securities and Exchange Commission ("SEC") on February 26, 2020) and other risk factors identified from time to time in the Company's filings with the SEC. Readers should carefully review these risk factors, and should not place undue reliance on the Company's forward-looking statements. These forward-looking statements are based on information, plans and estimates at the date of this press release. The Company undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
SOURCE Akorn, Inc.