The world of generics and specialty pharmaceuticals includes many companies that fly below the radar of most investors, but Akorn (Nasdaq:AKRX)
may be worth the time it takes to know it better. Not only is Akorn a
leading player in generic ophthalmology drugs, but the company's
acquisition of Hi-Tech Pharmacal (Nasdaq:HITK) looks like an all-too-rare case where both parties in the deal come out ahead.
Investors who took my advice regarding Hi-Tech a year ago are sitting
on gains of nearly 50% (though the intervening 14 months was not
smooth), but I'm not sure I'd rush to reinvest the proceeds into Akorn.
Although I do like Akron and I believe this deal strengthens the
company, the valuation there doesn't leave a lot of upside unless Akorn
can drive even better synergies than its guidance suggests.
Read more here:
http://www.investopedia.com/stock-analysis/082713/akorn-scores-rare-winwin-acquisition-akrx-hitk-teva-jnj.aspx
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