Akorn to acquire AVR (Theratears Co)

Answering the question of the next step for Dr. Jeffrey Gilbard's legacy company, Advanced Vision Research, Akorn is stepping up to the plate to purchase the maker of TheraTears.

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.