Akorn buying Advanced Vision for $26 mln cash
May 3, 2011
Akorn Inc. AKRX +2.44% said it will buy Massachusetts ophthalmic company Advanced Vision Research Inc. for $26 million.
With the deal, the niche generic pharmaceutical company that makes ophthalmic and injectable pharmaceuticals said it plans to launch a new consumer-health division to enter the over-the-counter eye-care market, pending the acquisition of the company.
Akorn said it expects the deal will be neutral to its 2011 per-share earnings, and it said it expects the deal to help 2012 earnings by 3 cents to 4 cents a share.
Advanced Vision develops products used for dry eyes, eyelid hygiene, contact lens comfort and eye nutrition under the TheraTears and MacuTrition brand names. The company had sales of $20 million last year across 20 countries.
Akorn Chief Executive Raj Rai noted that "AVR is a great strategic platform to expand into the OTC eye care market," and he said Akorn has had a "positive relationship with AVR for several years as a primary contract manufacturer."
Shares of Akorn closed Monday at $6.54 and were inactive premarket. The stock has more than tripled in value in the past year.