Akorn takes 3Q loss on weak vaccine revenue - News Wires

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Akorn takes 3Q loss on weak vaccine revenue

By: The Associated Press | 10 Nov 2009 | 07:27 AM ET

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LAKE FOREST, Ill. - Akorn Inc. reported a fourth-quarter loss Tuesday, saying sales of its flu vaccine dropped because of a shortage.

Akorn also took a $1.1 million charge as it wrote down the value of stock issued earlier this year. In total the company lost $5.1 million, or 6 cents per share, compared with a profit of $2.4 million, or 3 cents per share, in the same quarter a year ago.

Revenue dropped 39 percent to $19.4 million from $31.9 million. Along with lower sales of the combined tetanus-diphtheria vaccine and flu vaccines, Akorn reported lower sales to wholesale customers and hospitals. The company had previously decided not to distribute flu vaccines after this year.

The $1.1 million charge represented a decrease in the value of stock warrants that were issued in April to EJ Funds, which is run by Akorn's chairman and top shareholder John Kapoor. EJ Funds received warrants for about 1.65 million shares after it became the company's primary lender.

Akorn said it is launched generic versions of Acular, a treatment for seasonal conjunctivitis, and hydralazine hydrochloride, which is used against high blood pressure. It said sales of Acular were $119 million in 2008, and sales of generic hydralazine were about $23 million.

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