Insight into Akorn
Akorn (AKRX) is a mid cap stock with a market capitalization of ~$4.35 billion. AKRX has two operating streams—prescription pharmaceuticals and consumer health. In 2014, prescription pharmaceuticals generated revenue of $542.84 million, and consumer health generated revenue of $50.23 million— 91.5% and 8.5% of total revenue, respectively.
The above graph reflects the company’s revenue growth since 2010. In 2010, its revenue came in at $86.4 million, and in a span of five years that figure has grown to $593.1 million. On a year-over-year basis, the revenue grew from $317.7 million to $593.1, an increase of ~86.7%, or $275.4 million. The growth in revenue was contributed mainly by the Hi-Tech and VersaPharm business combinations, accounting for $198.6 million.
Through its acquisition strategy, AKRX has increased its revenue. During 2014, it acquired Hi Tech, which generated revenue of $176.9 million. It also acquired VersaPharm, which generated revenue of $21.7 million. In November 2013, AKRX acquired three ophthalmic products from Merck (MRK)— Azasite, Cosopt, and Cosopt PF—for $52.8 million in cash.
Investors can also invest in iShares Nasdaq Biotechnology ETF (IBB). IBB holds shares in mid cap stocks such as Alnylam Pharmaceuticals (ALNY) and Alkerrmes (ALKS). AKRX has a weight of 0.73% in the iShares Nasdaq Biotechnology ETF (IBB).
Akorn is a Louisiana corporation founded in 1971 in Abita Springs, Louisiana. In 1997, it relocated its corporate headquarters to Chicago, Illinois.
“AKRX is a specialty pharmaceutical company that develops, manufactures, and markets generic and branded prescription pharmaceuticals as well as animal and over-the-counter (“OTC”) consumer health products. AKRX specializes in difficult-to-manufacture sterile and non-sterile dosage forms including: ophthalmics, injectables, oral liquids, otics, topicals, inhalants, and nasal sprays.”
AKRX manufacturing facilities are in Decatur, Illinois; Somerset, New Jersey; Amityville, New York; and Paonta Sahib, Himachal Pradesh, India.