SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act
Date
of Report: March 6, 2012
(Date
of Earliest Event Reported: March
5, 2012)
Akorn,
Inc.
(Exact Name of Registrant as Specified in its Charter)
Louisiana |
001-32360 |
72-0717400 |
||
(State or other |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
1925 W. Field Court, Suite 300 |
(Address of principal executive offices) |
(847) 279-6100
(Registrant’s telephone number, including
area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On March 6, 2012, Akorn, Inc. (“Akorn”) issued a press release announcing financial results for the quarter and year ended December 31, 2011. A copy of the press release is furnished as Exhibit 99.1 to this report.
The information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 5.02 Departure of Directors or Certain officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On March 5, 2012, Akorn issued a press release announcing that on March 2, 2012, the Company’s Board of Directors approved the appointment of Adrienne L. Graves, Ph.D., to fill a vacant seat on the Board. A copy of the press release is furnished as Exhibit 99.2 to this report.
From 2002 to 2010, Dr. Graves was President and Chief Executive Officer of Santen Inc., the U.S. subsidiary of Santen Pharmaceutical Co., Ltd. She joined Santen Inc. in 1995 as Vice President of Clinical Affairs to initiate the company's clinical development efforts in the U.S. Prior to joining Santen Inc., Dr. Graves spent nine years with Alcon Laboratories, Inc. ("Alcon") in various roles. She currently serves on the Boards of TearLab Corporation, Encore Vision, the American Academy of Ophthalmology Foundation, the Pan-American Ophthalmology Foundation, the American Association for Cataract and Refractive Surgery, the Glaucoma Research Foundation, KeepYourSight Foundation, the Corporation Committee for the Brown University Medical School, and the Advisory Board for Amach Capital Partners. Dr. Graves also co-founded Ophthalmic Women Leaders and Glaucoma 360. She received her B.A. in Psychology with honors from Brown University, her PhD in Psychobiology from the University of Michigan and completed a postdoctoral fellowship in visual neuroscience at the University of Paris.
The information in Exhibit 99.2 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 | Press release issued by Akorn, Inc. dated March 6, 2012, announcing financial results for the quarter and year ended December 31, 2011. | |
99.2 | Press release issued by Akorn, Inc. dated March 5, 2012, announcing the appointment of Adrienne L. Graves to the Company’s Board of Directors, effective March 2, 2012. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
Akorn, Inc. |
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|
|
By: |
/s/ Timothy A. Dick |
|
Timothy A. Dick |
||||
Chief Financial Officer |
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Date: |
March 6, 2012 |
Exhibit 99.1
Akorn Reports 2011 Fourth Quarter and Year-End Financial Results
-Reports Record Q4 Revenue of $42.6 million and Q4 Adjusted EPS of $0.11-
LAKE FOREST, Ill.--(BUSINESS WIRE)--March 6, 2012--Akorn, Inc. (NASDAQ: AKRX), a niche generic pharmaceutical company, today reported financial results for the fourth quarter and year ended December 31, 2011.
Raj Rai, Chief Executive Officer commented, “We had a strong fourth quarter as a result of our ability to re-launch products that have been impacted by the industry-wide drug shortages as well as favorable market conditions for certain approved products. We expect similar trends to continue in 2012 and our challenge will be in successfully maneuvering through the shortages while addressing capacity constraints at our plants. We expect 2012 to be another strong year and will continue building and expanding our infrastructure to support growth. Key focus areas for the Company include: expanding manufacturing and R&D capacities, adding a dedicated hospital sales force, and integrating the Kilitch assets to broaden our global reach.”
2011 Key Highlights and Accomplishments
Consolidated revenue for the fourth quarter of 2011 was $42.6 million, up 77% over the prior year quarter’s consolidated revenue of $24.0 million. The increase in consolidated revenue was driven by the initial launch and the relaunch of a number of injectable and ophthalmic products, the AVR and Lundbeck acquisitions, and organic growth of established products, offset by decreases in contract services revenue.
Consolidated revenue for the year 2011 was $136.9 million, up 58% over the prior year consolidated revenue of $86.4 million.
Consolidated gross margin for the fourth quarter of 2011 was 60% compared to 53% in the comparable prior year period. Improvements in gross margin were largely the result of higher utilization of plant capacities.
Net income for the fourth quarter of 2011 was $5.7 million, or $0.05 per diluted share, compared to net income of $23.7 million, or $0.23 per diluted share, in the prior year quarter. Fourth quarter 2010 net income per diluted share benefited from a $0.21 gain on the sale of the Akorn-Strides, LLC joint venture product portfolio to Pfizer.
Non-GAAP adjusted net income for the fourth quarter of 2011 was $11.4 million, or $0.11 per diluted share, compared to non-GAAP adjusted net income of $5.3 million, or $0.05 per diluted share, in the prior year quarter. Non-GAAP financial measures are defined further below under “Non-GAAP Financial Measures.”
The Company generated $7.0 million in positive cash flow from operating activities in the fourth quarter of 2011 and ended the year with $84.0 million in cash and cash equivalents.
2012 Outlook
The Company’s 2012 outlook has been updated to include the impact of the acquisition of certain assets of Kilitch Drugs (India) Limited. This revised outlook excludes the impact of any new approvals after March 6, 2012 as well as the impact of the Kilitch transaction on 2012 capital expenditures.
Total revenues | $228 – 238 | Million | ||||
Total gross margin percentage |
58 – 60 |
% |
||||
SG&A expenses |
$49 – 51 |
million |
||||
R&D expenses |
$15 – 18 |
million |
||||
Tax provision |
$24 – 26 |
million |
||||
GAAP net income |
$36 – 39 |
million |
||||
GAAP net income per diluted share |
$0.33 – 0.36 |
|||||
Adjusted net income |
$48 – 51 |
million |
||||
Adjusted net income per diluted share |
$0.44 – 0.46 |
|||||
Adjusted EBITDA |
$88 – 93 |
million |
||||
Capital expenditures |
$15 – 20 |
million |
||||
Akorn’s R&D Pipeline
The Company has 37 ANDAs filed with the FDA with a combined annual market size of approximately $3.7 billion. The Company has completed development work on 8 additional products with a combined annual market size of approximately $1.8 billion and expects to file these products with the FDA shortly.
Fourth Quarter 2011 Conference Call/Webcast
The Company will host a conference call at 10:00 a.m. Eastern Time on Tuesday, March 6, 2012, to discuss fourth quarter 2011 results followed by a Q&A session. The domestic call-in number is (800) 475-6881 and the international call-in number is (913) 312-0396. The confirmation code for all callers is 5184961. The URL for the webcast is http://www.videonewswire.com/event.asp?id=85122.
About Akorn, Inc.
Akorn, Inc. is a niche 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, and Paonta Sahib, India, where the Company manufactures ophthalmic and injectable pharmaceuticals. Additional information is available on the Company’s website at www.akorn.com.
Forward Looking Statement
This press release includes statements that may constitute "forward-looking statements", including projections of certain measures of Akorn's results of operations, projections of certain charges and expenses, and other statements regarding Akorn's goals, regulatory approvals and strategy. Akorn cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Because such statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Factors that could cause or contribute to such differences include, but are not limited to: statements relating to future steps we may take, prospective products, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results. These cautionary statements should be considered in connection with any subsequent written or oral forward-looking statements that may be made by the company or by persons acting on its behalf and in conjunction with its periodic SEC filings. You are advised, however, to consult any further disclosures we make on related subjects in our reports filed with the SEC. In particular, you should read the discussion in the section entitled "Cautionary Statement Regarding Forward-Looking Statements" in our most recent Annual Report on Form 10-K, as it may be updated in subsequent reports filed with the SEC. That discussion covers certain risks, uncertainties and possibly inaccurate assumptions that could cause our actual results to differ materially from expected and historical results. Other factors besides those listed there could also adversely affect our results.
Non-GAAP Financial Measures
In addition to reporting all financial information required in accordance with generally accepted accounting principles (GAAP), Akorn is also reporting Adjusted EBITDA, Adjusted net income and Adjusted net income per diluted share, which are non-GAAP financial measures. Since Adjusted EBITDA, Adjusted net income and Adjusted net income per diluted share are not GAAP financial measures, they should not be used in isolation or as a substitute for consolidated statements of operations and cash flow data prepared in accordance with GAAP. In addition, Akorn’s definitions of Adjusted EBITDA, Adjusted net income and Adjusted net income per diluted share may not be comparable to similarly titled non-GAAP financial measures reported by other companies. For a full reconciliation of Adjusted EBITDA and Adjusted net income to GAAP net income (loss), please see the attachments to this earnings release.
Adjusted EBITDA, as defined by the company, is calculated as follows:
Net income (loss), plus:
Adjusted net income, as defined by the company, is calculated as follows:
Income (loss) before income taxes, plus:
Adjusted net income per diluted share is equal to Adjusted net income divided by the actual or anticipated diluted share count for the applicable period.
AKORN, INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
IN THOUSANDS, EXCEPT PER SHARE DATA | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||||||||
DECEMBER 31, | DECEMBER 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues | $ | 42,625 | $ | 24,045 | $ | 136,920 | $ | 86,409 | ||||||||
Cost of sales | 17,050 | 11,286 | 57,231 | 43,944 | ||||||||||||
GROSS PROFIT | 25,575 | 12,759 | 79,689 | 42,465 | ||||||||||||
Selling, general and administrative expenses | 9,596 | 6,591 | 33,135 | 22,721 | ||||||||||||
Research and development expenses | 3,792 | 1,872 | 11,555 | 6,975 | ||||||||||||
Amortization of intangibles | 659 | 255 | 1,733 | 1,497 | ||||||||||||
TOTAL OPERATING EXPENSES | 14,047 | 8,718 | 46,423 | 31,193 | ||||||||||||
OPERATING INCOME | 11,528 | 4,041 | 33,266 | 11,272 | ||||||||||||
Amortization of deferred financing costs | (187 | ) | (2,021 | ) | (1,948 | ) | (2,841 | ) | ||||||||
Interest expense, net | (997 | ) | (191 | ) | (2,283 | ) | (942 | ) | ||||||||
Non-cash interest expense - convertible notes | (914 | ) | - | (2,109 | ) | - | ||||||||||
Equity in earnings of unconsolidated joint venture | 20 | 22,033 | 14,550 | 23,368 | ||||||||||||
Change in fair value of warrants liability | - | - | - | (8,881 | ) | |||||||||||
Other non-operating expenses | (170 | ) | - | (170 | ) | - | ||||||||||
INCOME BEFORE INCOME TAXES | 9,280 | 23,862 | 41,306 | 21,976 | ||||||||||||
Income tax provision (benefit) | 3,547 | 115 | (1,707 | ) | 152 | |||||||||||
NET INCOME | $ | 5,733 | $ | 23,747 | $ | 43,013 | $ | 21,824 | ||||||||
NET INCOME PER SHARE: | ||||||||||||||||
BASIC | $ | 0.06 | $ | 0.25 | $ | 0.45 | $ | 0.24 | ||||||||
DILUTED | $ | 0.05 | $ | 0.23 | $ | 0.41 | $ | 0.22 | ||||||||
SHARES USED IN COMPUTING NET INCOME | ||||||||||||||||
PER SHARE: | ||||||||||||||||
BASIC | 94,761 | 93,872 | 94,549 | 92,801 | ||||||||||||
DILUTED | 105,985 | 103,336 | 103,912 | 99,250 | ||||||||||||
AKORN, INC. | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
IN THOUSANDS, EXCEPT SHARE DATA | ||||||||||
DECEMBER 31, | DECEMBER 31, | |||||||||
2011 | 2010 | |||||||||
(Unaudited) | (Audited) | |||||||||
ASSETS | ||||||||||
CURRENT ASSETS: | ||||||||||
Cash and cash equivalents | $ | 83,962 | $ | 41,623 | ||||||
Trade accounts receivable, net | 25,307 | 11,270 | ||||||||
Inventories | 35,456 | 18,917 | ||||||||
Deferred taxes, current | 9,344 | - | ||||||||
Prepaid expenses and other current assets | 3,071 | 1,803 | ||||||||
TOTAL CURRENT ASSETS | 157,140 | 73,613 | ||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 44,389 | 32,731 | ||||||||
OTHER LONG-TERM ASSETS: | ||||||||||
Goodwill | 11,863 | - | ||||||||
Other intangibles, net | 80,838 | 3,122 | ||||||||
Deferred financing costs | 3,864 | 1,545 | ||||||||
Other | 10,242 | 105 | ||||||||
TOTAL OTHER LONG-TERM ASSETS | 106,807 | 4,772 | ||||||||
TOTAL ASSETS | $ | 308,336 | $ | 111,116 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
CURRENT LIABILITIES: | ||||||||||
Trade accounts payable | $ | 17,874 | $ | 4,894 | ||||||
Accrued compensation | 5,094 | 3,396 | ||||||||
Accrued expenses and other liabilities | 5,321 | 3,473 | ||||||||
Advance from unconsolidated joint venture | - | 10,177 | ||||||||
TOTAL CURRENT LIABILITIES | 28,289 | 21,940 | ||||||||
LONG-TERM LIABILITIES: | ||||||||||
Convertible notes due 2016 | 100,808 | - | ||||||||
Purchase consideration payable - Lundbeck | 13,841 | - | ||||||||
Deferred taxes, non-current | 4,933 | - | ||||||||
Lease incentive obligations | 958 | 1,125 | ||||||||
Product warranty liability | 1,299 | 1,299 | ||||||||
TOTAL LONG-TERM LIABILITIES | 121,839 | 2,424 | ||||||||
TOTAL LIABILITIES | 150,128 | 24,364 | ||||||||
SHAREHOLDERS' EQUITY: | ||||||||||
Common stock, no par value -- 150,000,000 shares authorized, 94,936,282 and 93,975,334 shares issued and outstanding at December 31, 2011 and December 31, 2010, respectively | ||||||||||
212,636 | 182,466 | |||||||||
Warrants to acquire common stock | 17,946 | 19,673 | ||||||||
Accumulated deficit | (72,374 | ) | (115,387 | ) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 158,208 | 86,752 | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 308,336 | $ | 111,116 | ||||||
AKORN, INC. | |||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||
IN THOUSANDS (UNAUDITED) | |||||||||||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | ||||||||||||||||||
DECEMBER 31, | DECEMBER 31, | ||||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||
Net income | $ | 5,733 | $ | 23,747 | $ | 43,013 | $ | 21,824 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
Depreciation and amortization | 1,545 | 1,145 | 5,246 | 5,030 | |||||||||||||||
Write-off and amortization of deferred financing fees | 187 | 2,021 | 1,948 | 2,841 | |||||||||||||||
Non-cash stock compensation expense | 1,392 | 742 | 5,159 | 2,737 | |||||||||||||||
Non-cash change in fair value of warrants liability | - | - | - | 8,881 | |||||||||||||||
Non-cash interest on convertible notes | 914 | - | 2,109 | - | |||||||||||||||
Equity in earnings of unconsolidated joint venture | (20 | ) | (22,033 | ) | (14,550 | ) | (23,368 | ) | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Trade accounts receivable | (5,601 | ) | 489 | (13,581 | ) | (2,045 | ) | ||||||||||||
Inventories | (1,143 | ) | (816 | ) | (9,307 | ) | (5,750 | ) | |||||||||||
Deferred tax assets, net | 2,277 | - | (4,411 | ) | - | ||||||||||||||
Prepaid expenses and other current assets | 33 | (1,261 | ) | (183 | ) | 233 | |||||||||||||
Supply agreement termination liabilities | - | - | - | (1,500 | ) | ||||||||||||||
Trade accounts payable | 1,064 | (645 | ) | 5,892 | 1,608 | ||||||||||||||
Accrued expenses and other liabilities | 644 | 1,796 | 1,668 | 1,791 | |||||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 7,025 | 5,185 | 23,003 | 12,282 | |||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||
Payments for acquisitions and equity investments | (45,000 | ) | - | (81,734 | ) | - | |||||||||||||
Purchases of property, plant and equipment | (4,725 | ) | (2,066 | ) | (14,849 | ) | (4,710 | ) | |||||||||||
Distribution from unconsolidated joint venture | - | 35,158 | 3,881 | 36,265 | |||||||||||||||
Purchase of product licensing rights | - | - | (5,678 | ) | - | ||||||||||||||
NET CASH (USED IN) PROVIDED BY | |||||||||||||||||||
INVESTING ACTIVITIES | (49,725 | ) | 33,092 | (98,380 | ) | 31,555 | |||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||
Proceeds from issuance of convertible notes | - | - | 120,000 | - | |||||||||||||||
Debt financing costs | (415 | ) | - | (5,098 | ) | - | |||||||||||||
Repayments of subordinated debt - related party | (6,439 | ) | (6,439 | ) | |||||||||||||||
Repayments of line of credit | - | - | - | (3,000 | ) | ||||||||||||||
Net proceeds from common stock offering and warrant exercises | - | - | 1,727 | 4,969 | |||||||||||||||
Proceeds under stock option and stock purchase plans | 469 | 287 | 1,087 | 639 | |||||||||||||||
NET CASH PROVIDED BY (USED IN) | |||||||||||||||||||
FINANCING ACTIVITIES | 54 | (6,152 | ) | 117,716 | (3,831 | ) | |||||||||||||
INCREASE (DECREASE) IN CASH AND CASH | |||||||||||||||||||
EQUIVALENTS | (42,646 | ) | 32,125 | 42,339 | 40,006 | ||||||||||||||
Cash and cash equivalents at beginning of period | 126,608 | 9,498 | 41,623 | 1,617 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 83,962 | $ | 41,623 | $ | 83,962 | $ | 41,623 |
AKORN, INC. | ||||||||||||||||
RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA | ||||||||||||||||
IN THOUSANDS (UNAUDITED) | ||||||||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||||||||
DECEMBER 31, | DECEMBER 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
NET INCOME | $ | 5,733 | $ | 23,747 | $ | 43,013 | $ | 21,824 | ||||||||
ADJUSTMENTS TO ARRIVE AT EBITDA: | ||||||||||||||||
Depreciation expense | 886 | 890 | 3,513 | 3,533 | ||||||||||||
Amortization expense | 659 | 255 | 1,733 | 1,497 | ||||||||||||
Interest expense, net | 997 | 191 | 2,283 | 942 | ||||||||||||
Non-cash interest expense - convertible notes | 914 | - | 2,109 | - | ||||||||||||
Income tax provision | 3,547 | 115 | (1,707 | ) | 152 | |||||||||||
EBITDA | $ | 12,736 | $ | 25,198 | $ | 50,944 | $ | 27,948 | ||||||||
NON-CASH AND OTHER NON-RECURRING INCOME | ||||||||||||||||
AND EXPENSES: | ||||||||||||||||
Non-cash stock compensation expense | 1,392 | 742 | 5,159 | 2,737 | ||||||||||||
Change in fair value of warrants liability | - | - | - | 8,881 | ||||||||||||
Write-off and amortization of deferred financing costs | 187 | 2,021 | 1,948 | 2,841 | ||||||||||||
Equity in earnings of unconsolidated joint venture that is related to the sale of the joint venture's assets | ||||||||||||||||
- | (21,563 | ) | (13,380 | ) | (21,563 | ) | ||||||||||
Amortization of the fair value adjustment to AVR's acquired inventory | ||||||||||||||||
47 | - | 600 | - | |||||||||||||
ADJUSTED EBITDA | $ | 14,362 | $ | 6,398 | $ | 45,271 | $ | 20,844 | ||||||||
AKORN, INC. | ||||||||||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME | ||||||||||||||||
IN THOUSANDS, EXCEPT PER SHARE DATA (UNAUDITED) | ||||||||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||||||||
DECEMBER 31, | DECEMBER 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
INCOME BEFORE INCOME TAXES | $ | 9,280 | $ | 23,862 | $ | 41,306 | $ | 21,976 | ||||||||
ADJUSTMENTS TO ARRIVE AT ADJUSTED NET INCOME: | ||||||||||||||||
Non-cash stock compensation expense | 1,392 | 742 | 5,159 | 2,737 | ||||||||||||
Non-cash interest expense - convertible notes | 914 | - | 2,109 | - | ||||||||||||
Amortization expense | 659 | 255 | 1,733 | 1,497 | ||||||||||||
Write-off and amortization of deferred financing costs | 187 | 2,021 | 1,948 | 2,841 | ||||||||||||
Change in fair value of warrants liability | - | - | - | 8,881 | ||||||||||||
Equity in earnings of unconsolidated joint venture that is related to the sale of the joint venture's assets | ||||||||||||||||
- | (21,563 | ) | (13,380 | ) | (21,563 | ) | ||||||||||
Amortization of the fair value adjustment to AVR's acquired inventory | ||||||||||||||||
47 | - | 600 | - | |||||||||||||
ADJUSTED INCOME BEFORE INCOME TAXES | 12,479 | 5,317 | 39,475 | 16,369 | ||||||||||||
ADJUSTED INCOME TAX PROVISION | 1,061 | 26 | 3,355 | 113 | ||||||||||||
ADJUSTED NET INCOME | $ | 11,418 | $ | 5,291 | $ | 36,120 | $ | 16,256 | ||||||||
ADJUSTED NET INCOME PER DILUTED SHARE | $ | 0.11 | $ | 0.05 | $ | 0.35 | $ | 0.16 | ||||||||
CONTACT:
Akorn, Inc.
Tim Dick, Chief Financial Officer
(847)
279-6100
Exhibit 99.2
Akorn Announces the Appointment of Dr. Adrienne Graves, Ph.D. to its Board of Directors
LAKE FOREST, Ill.--(BUSINESS WIRE)--March 5, 2012--Akorn, Inc. (NASDAQ: AKRX), a niche generic pharmaceutical company, announced today that its Board of Directors appointed Dr. Adrienne Graves, Ph.D., as Director of the Company, effective March 2, 2012.
Raj Rai, Chief Executive Officer, commented, “We are excited to have Dr. Graves join our Board. Dr. Graves brings years of experience and expertise in ophthalmology. We look forward to her leadership and insight as we continue to build the ophthalmic segment of our business.”
Adrienne L. Graves, Ph.D., is a visual scientist by training and a global industry leader in ophthalmology. From 2002 to 2010, Dr. Graves was President and Chief Executive Officer of Santen Inc., the U.S. subsidiary of Santen Pharmaceutical Co., Ltd. She joined Santen Inc. in 1995 as Vice President of Clinical Affairs to initiate the company's clinical development efforts in the U.S. Prior to joining Santen Inc., Dr. Graves spent nine years with Alcon Laboratories, Inc. ("Alcon") in various roles. She currently serves on the Boards of TearLab Corporation, Encore Vision, the American Academy of Ophthalmology Foundation, the Pan-American Ophthalmology Foundation, the American Association for Cataract and Refractive Surgery, the Glaucoma Research Foundation, KeepYourSight Foundation, the Corporation Committee for the Brown University Medical School, and the Advisory Board for Amach Capital Partners. Dr. Graves also co-founded Ophthalmic Women Leaders and Glaucoma 360. She received her B.A. in Psychology with honors from Brown University, her PhD in Psychobiology from the University of Michigan and completed a postdoctoral fellowship in visual neuroscience at the University of Paris.
About Akorn, Inc.
Akorn, Inc. is a niche pharmaceutical company engaged in the development, manufacture and marketing of multisource and branded pharmaceuticals. Akorn has manufacturing facilities located in Decatur, Illinois and Somerset, New Jersey where the Company manufactures ophthalmic and injectable pharmaceuticals. Additional information is available on the Company’s website at www.akorn.com.
Forward Looking Statement
Certain statements in this press release that are not strictly historical may be “forward-looking” statements, which are intended to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements relate to future events or future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that could materially affect our actual results, levels of activity, performance or achievements include, but are not limited to, the following items: (i) Our ability to generate cash from operations sufficient to meet our working capital requirements; (ii) Our ability to sustain positive relationships with our major customers; (iii) The effects of federal, state and other governmental regulation on our business; (iv) Our success in developing, manufacturing, acquiring and marketing new products; (v) The success of our strategic partnerships for the development and marketing of new products; (vi) Our ability to comply with all of the requirements of the U.S. Food and Drug Administration (“FDA”), including current Good Manufacturing Practices regulations; (vii) Our ability to bring new products to market and the effects of sales of such products on our financial results; (viii) The effects of competition from generic pharmaceuticals and from other pharmaceutical companies; (ix) Our ability to effectively integrate acquired businesses; (x) Our ability to raise funds to pay interest on our outstanding convertible senior notes or repurchase the notes upon a fundamental change; (xi) Our ability to obtain additional funding or financing to operate and grow our business; (xii) Availability of raw materials needed to produce our products. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included within the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the SEC and the risks discussed in the Company’s other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. Except as may be required by law, the Company undertakes no obligation to address or publicly update or revise these forward-looking statements to reflect new information, events or circumstances. These cautionary statements should be considered in connection with any subsequent written or oral forward-looking statements that may be made by the Company or by persons acting on its behalf and in conjunction with the Company’s periodic SEC filings.
CONTACT:
At the Company:
Akorn, Inc.
Tim Dick, Chief Financial
Officer
(847) 279-6150