Akorn, Inc. has entered into a definitive agreement to acquire Hi-Tech Pharmacal Co., Inc., a specialty pharmaceutical company that manufactures and markets generic, branded, and OTC products, for $640 million in cash. The combined company is expected to have annual revenues of more than $500 million.
Hi-Tech specializes in difficult to manufacture liquid and semi-solid dosage forms. Hi-Tech produces and markets a range of oral solutions and suspensions, as well as topical ointments and creams, nasal sprays, otics, sterile ophthalmics and sterile ointment and gels products. Hi-Tech’s Health Care Products division develops and markets of OTC products and its ECR Pharmaceuticals subsidiary markets branded prescription products.
Raj Rai, Akorn’s chief executive officer, said, “This is a transformative event for our company. The portfolio of Hi-Tech products is a great strategic fit to our currently marketed products as it diversifies our offering to our retail customers beyond ophthalmics to other niche dosage forms such as oral liquids, topical creams and ointments, nasal sprays and otics. In addition, we are excited about Hi-Tech’s product pipeline which would further enhance growth opportunities for the combined platform.”
Hi-Tech’s chief executive officer, David Seltzer, said, “We are excited about the transaction as it delivers compelling value to our shareholders. The combined portfolio of marketed products and products in development offer a very unique platform with great growth potential. We are very pleased to be joining forces with Akorn and their strong management team led by Raj Rai.”