Akorn Inc. (NASDAQ:AKRX) lost about one-third of its value in premarket trading after Germany's Fresenius Kabi AB announced it was pulling the plug on its planned US$4.3bn acquisition of the U.S. maker of generic drugs.
The announcement comes two months after Akorn revealed that it and Fresenius were investigating what was termed "alleged breaches of FDA data integrity requirements" related to product development at Akorn.
Fresenius cited the alleged data breaches in its decision to ditch its definitive agreement with Akron. Akorn responded today by saying the ongoing investigation of the alleged breaches "is not a condition to closing" and had "not found any facts that would result in a material adverse effect on Akorn’s business." Consequently, there was "no basis to terminate the transaction," Akorn said.
"We intend to vigorously enforce our rights, and Fresenius’ obligations, under our binding merger agreement," Akorn said.
Around 8 a.m. ET, Akron was trading in premarket action at around US$13.10 a share, down 33% from its closing price of US$19.70 last Friday, April 20.