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Fresenius shares gain after it ditches Akorn takeover

FRANKFURT (Reuters) - Shares in healthcare group Fresenius ( FREG.DE ) jumped as much as 3.9 percent after it pulled out of the $4.75 billion acquisition of Akorn ( AKRX.O ), with analysts saying it was extricating itself from taking on an underperforming business.

Germany’s Fresenius on Sunday cited evidence of misconduct in the target’s reporting of drug development data to U.S. healthcare regulators, but analysts pointed to investor relief because Akorn’s business had deteriorated.

Generic drugmaker Akorn was burdened last year by supply disruptions and competition for a range of products, such as ephedrine injections for low blood pressure under anesthesia and lidocaine anesthetic ointment.

The German company said in February that it could terminate the deal after investigating alleged breaches of U.S. Food and Drug Administration (FDA) data integrity requirements.

In another reversal, the German group’s subsidiary Fresenius Medical Care (FMC) struck a deal on Saturday to sell its majority stake in Sound Inpatient Physicians Holdings for $2.15 billion, less than four years after buying it.

The shares dropped 3.6 percent as the group also cut its 2018 sales target because of lower reimbursement of calcimimetic drugs at its dialysis service business in the United States.

FMC had bought Sound Inpatient under a drive to build up a so-called care coordination business to expand into other types of therapy that kidney dialysis patients typically need.

READ MORE (Reuters)

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  • Akorn's Stock Crashes as Germany's Fresenius Ends Takeover Amid Data
  • Fresenius says will not renegotiate after cancelling Akorn dealReuters
  • Akorn (AKRX) Stock: Dives On Cancelled Merger And AccusationsCNA Finance
  • Akorn's stock plunged toward 5-year low after Fresenius terminates merger dealMarketWatch
  • Germany's Fresenius, US-based Akorn at odds over merger dealSeattle Times
  • Fresenius abandons US$4.3 bil Akorn deal, setting up fightThe Edge Markets MY
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Fresenius shares gain after it ditches Akorn takeover


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