Akorn posts bigger 1Q profit, makes eye care deal
Generic drugmaker Akorn Inc. said Tuesday that its profit grew in the first quarter as sales of ophthalmic drugs, injectable products and new products increased.
Akorn also said it agreed to buy over-the-counter eye care product maker Advanced Vision Research for $26 million in cash.
The company said its quarterly profit rose to $5.8 million, or 6 cents per share, from $3.5 million, or 4 cents per share. Its revenue increased 24 percent, to $25.4 million from $20.5 million. Akorn said revenue from its core businesses — ophthalmic drugs, injectable drugs, drugs for hospitals and contract services — increased 66 percent. Sales of products it launched in 2010 got stronger.
Akorn said Advanced Vision Research has about $20 million in annual sales, and its acquisition is expected to add $12 million to its sales this year. AVR's products include TheraTears, which are used to treat dry eyes, and for eyelid cleansing and eye nutrition. The company is based in Woburn, Mass.
Akorn said the deal will reduce its 2011 profit by a penny to 2 cents per share. It now expects $106 million to $110 million in revenue in 2011, up from its previous estimate of $94 million to $98 million. Akorn said the purchase will raise its 2012 profit by 3 to 4 cents per share.
Shares of Akorn rose 2 cents to $6.56 in morning trading.