Akorn divests ECR Pharma shortly after acquisition

 

Art Przybyl, Chief Executive Officer of Akorn, Inc., preside over the opening bell.

Art Przybyl, Chief Executive Officer of Akorn, Inc., preside over the opening bell.

Akorn, Inc. announced that it has sold its subsidiary, ECR Pharmaceuticals (ECR), to Valeant Pharmaceuticals (NYSE/TSX: VRX) for $41 million in cash and assumption of certain liabilities.

ECR Pharmaceuticals was formed in 1990 with a major focus on respiratory therapies. In April, 2014 ECR was acquired by Akorn as part of a larger acquisition of Hi-Tech Pharmacal.

Raj Rai, Akorn’s Chief Executive Officer, commented, “While ECR is a solid platform of branded products, it is not a strategic fit to our business model of focusing on niche dosage forms. We believe this asset has better prospects for future growth and development under the leadership of a company like Valeant.”