Akorn, Inc. (ARKX) Shares Up on Rumor It’s a Takeover Target; The Company Confirms
Akorn, Inc. (NASDAQ:AKRX) investors are overwhelmingly excited today following an earlier report from Bloomberg, claiming that European health-care provider Kabi Fresenius is considering a bid for the drug maker. Akorn shares reacted to the news, jumping nearly 18% to $29.77.
Following the closing bell, Akorn confirmed that it’s currently in discussions with Fresenius concerning a potential acquisition of Akorn, triggering another rise in share prices.
On the ratings front, Akorn has been the subject of a number of recent research reports. In a report issued on April 4, Jefferies analyst David Steinberg reiterated a Buy rating on AKRX, with a price target of $24, which implies a downside of 19% from current levels. Separately, on March 6, Deutsche Bank’s Gregg Gilbert downgraded the stock to Hold and has a price target of $24.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Steinberg and Gregg Gilbert have a yearly average return of 0.4% and a loss of -2.3% respectively. Steinberg has a success rate of 45% and is ranked #2574 out of 4556 analysts, while Gilbert has a success rate of 46% and is ranked #3933.
Akorn, Inc. is a niche pharmaceutical company that develops, manufactures and markets generic and prescription pharmaceuticals, as well as, animal and consumer health products. It operates through the Prescription Pharmaceuticals and Consumer Health segments. The Prescription Pharmaceuticals segment engages in the sales of generic and branded prescription pharmaceuticals including ophthalmics, injectables, oral liquids, otics, topicals, inhalants, and nasal sprays. The Consumer Health segment engages in the sales of animal health and over-the-counter products, both branded and private label.