Akorn Acquires Betimol® from Santen

LAKE FOREST, Ill.–(BUSINESS WIRE)–

Akorn, Inc. (AKRX), a niche generic pharmaceutical company,
today announced that it has acquired the NDA and all rights to Betimol®
(timolol ophthalmic solution) 0.25% 0.5% from Santen. Akorn plans to
begin shipping Betimol® in the first quarter of 2014.

Raj Rai, Chief Executive Officer, commented, “We are excited to add
Betimol® to our portfolio of branded ophthalmic products. This
acquisition further enhances our platform and growth opportunities in
2014.”

Financial Impact of the Transaction

This transaction is expected to add approximately $8 million to $9
million in revenues to 2014 and approximately $0.03 to $0.04 of adjusted
net income per diluted share.

About Betimol

BETIMOL® is a prescription eye drop medicine used to reduce pressure
inside the eye in patients with ocular hypertension or open-angle
glaucoma. The active ingredient of BETIMOL® is timolol hemihydrate and
is available in concentrations of 0.25% and 0.5%.

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.

About Santen

Founded in 1890, Santen is a global company headquartered in Osaka,
Japan. Santen researches, develops and markets ophthalmic products for
physicians worldwide. Among prescription ophthalmic pharmaceuticals,
Santen holds the top share within the Japanese market and is one of the
leading ophthalmic companies worldwide. For more information, visit http://www.santen.co.jp/.

Forward Looking Statements

This press release includes statements that may constitute
“forward-looking statements”, including projections of certain measures
of Akorn’s results of operations, projections of sales, projections of
certain charges and expenses, projections related to the number and
potential market size of ANDAs 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 acquisitions or agreements, 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 Measure

In addition to providing financial information in accordance with U.S.
generally accepted accounting principles (GAAP), the Company is also
providing Adjusted net income per diluted share, which is a non-GAAP
financial measure. Since Adjusted net income per diluted share is a
non-GAAP financial measure, it should not be used in isolation or as a
substitute for GAAP financial measures. In addition, the Company’s
definition of Adjusted net income per diluted share may not be
comparable to similarly titled non-GAAP financial measures reported by
other companies.

Adjusted net income, as defined by the Company, is calculated as
follows:

Net income, plus:

. The recorded provision for income taxes

. Intangible asset amortization

. Non-cash expenses, such as non-cash interest, share-based compensation
expense, settlement of product liability warranty and deferred financing
cost amortization

. Other adjustments, such as legal settlements and various acquisition
related expenses

. Less an estimated cash tax provision.

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.

The Company believes that Adjusted net income per diluted share is a
meaningful financial indicator, to both Company management and
investors, in that it excludes non-cash income and expense items that
have no impact on current or future cash flows, as well as other income
and expense items that are not expected to recur and therefore are not
reflective of continuing operating performance. Adjusted net income per
diluted share provides the Company and investors with income figures
that would be expected to be more aligned with cash flows than GAAP net
income per share, which includes a number of non-cash income and expense
items.

While the Company uses Adjusted net income per diluted share in managing
and analyzing its business and financial condition and believes this
non-GAAP financial measure to be useful to investors in evaluating the
Company’s performance, this financial measure has certain shortcomings.
Adjusted net income per share does not take into account non-cash
expenses that reflect the amortization of past expenditures, or include
stock-based compensation, which is an important and material element of
the Company’s compensation package for its directors, officers and other
key employees. Due to the inherent limitations of this non-GAAP
financial measure, the Company’s management utilizes comparable GAAP
financial measures to evaluate the business in conjunction with Adjusted
net income per diluted share and encourages investors to do likewise.