Akorn Acquires Three Hospital-Based Branded Injectables from Lundbeck

LAKE FOREST, Ill.–(BUSINESS WIRE)–

Akorn, Inc. (NASDAQ: AKRX – News), a niche generic pharmaceutical company,
today announced that its wholly-owned subsidiary, Oak Pharmaceuticals,
has acquired three off-patent, branded, hospital-based injectables from
the US subsidiary of H. Lundbeck A/S. According to the agreement, Akorn
will make an upfront payment of $45 million and a subsequent milestone
payment of $15 million in cash after 3 years. The initial purchase price
and the subsequent milestone payment are subject to a reduction if
certain sales targets are not met in the first three years and the
subsequent three years post closing. The acquired portfolio consists of
Nembutal®, a Schedule II controlled drug, Diuril® and Cogentin®. In
addition, Akorn has signed a transition services agreement with Lundbeck
to ensure product availability.

Raj Rai, Chief Executive Officer commented, “These products will
strengthen Akorn’s existing portfolio of niche, hospital-based
injectables and are within the scope of our manufacturing capabilities.”

Financial Impact of the Transaction

These products are expected to add approximately $30 million to $35
million in revenue in 2012 and EBITDA of $22 million to $25 million. The
Company intends to issue 2012 guidance in January.

About the Products

Nembutal® (pentobarbital sodium injection, USP) is a member of
the barbiturate class of medications. Nembutal is a sterile solution for
intravenous or intramuscular injection in 20 mL and 50 mL multiple-dose
vials. It is indicated for use as a sedative, a hypnotic for short-term
treatment of insomnia, pre-anesthetic and as an anticonvulsant in the
emergency control of certain acute convulsive episodes, such as those
associated with status epilepticus, cholera, eclampsia, meningitis,
tetanus and toxic reactions to strychnine or local anesthetics.
Nembutal® is marketed through a restrictive distribution program in the
United States.

Sodium Diuril is a diuretic and antihypertensive. Sodium Diuril
is a dry, sterile lyophilized powder supplied in vials equivalent to
0.5g of chlorothiazide. Diuril® (chlorothiazide sodium) is indicated as
adjunctive therapy in edema associated with congestive heart failure,
hepatic cirrhosis, and corticosteroid and estrogen therapy. Diuril® has
also been found useful in treating edema due to various forms of renal
dysfunction such as nephritic syndrome, acute glomerulonephritis, and
chronic renal failure.

Cogentin® (benzotropine mesylate injection) belongs to a group of
medicines called anticholinergics that block the effects of
acetylcholine, a neurotransmitter. Cogentin is available in 2 mL ampules
with 1 mg benztropine mesylate per mL. It is used to treat the symptoms
of Parkinson’s disease and is also useful in the control of
extrapyramidal disorders (except tardive dyskinesia) due to neuroleptic
drugs (e.g. phenothiazines).

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 are forward looking statements
and 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; and (xiii) Other factors
referred to in our most recent Form 10-Q, our Form 10-K and our other
Securities and Exchange Commission (“SEC”) filings. The Company’s
reports to the SEC contain detailed information relating to such
factors, including, without limitation, the information under the
caption Risk Factors in Item 1A of the Company’s Annual Report on Form
10-K for the year ended December 31, 2010, which information is
incorporated by reference herein and updated by the Company’s Quarterly
Reports on Form 10-Q. The Company does not undertake any obligation or
plan to update these forward-looking statements, even though its
situation may change. We assume no obligation to publicly update or
revise these forward-looking statements for any reason, whether as a
result of new information, future events, or otherwise. 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.

At the Company:
Akorn, Inc.
Tim Dick, (847) 279-6150
Chief Financial Officer

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