Akorn Inc to buy Hi-Tech Pharmacal for $640 million

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Eye-care specialist, Akorn Inc, has agreed to buy Hi-Tech Pharmacal Co. for $640 million in cash. This will allow Akorn to expand into areas including cold and cough treatments. Akorn, maker of generic eye products, said the acquisition will add to earnings as soon as the deal is completed.

"The portfolio of Hi-Tech products is a great strategic fit to our currently marketed products as it diversifies our offering to our retail customers beyond ophthalmics to other niche dosage forms. We also plan to capitalize on the manufacturing capabilities of Hi-Tech to further expand our presence in the private label OTC business."

Raj Rai, Akorn Chief Executive Officer

The combined company is said to expect annual revenue of more than $500 million.