Skip to main content
You are the owner of this article.
You have permission to edit this article.
Edit
Akorn, which has 2 Decatur facilities, announces new ownership

Akorn, which has 2 Decatur facilities, announces new ownership

{{featured_button_text}}

LAKE FOREST — Akorn Inc. has announced the United States Bankruptcy Court for the District of Delaware has approved its sale to the company's existing lenders.

Akorn, a specialty pharmaceutical company with manufacturing operations in Decatur, is working to finalize closing obligations and anticipates the sale will be completed in the next few weeks, the company said in a statement. 

Decatur drugmaker Akorn files for Chapter 11 bankruptcy

"We are pleased to have received court approval for our sale, achieving a critical milestone that will allow us to move beyond this process under a new ownership structure in the coming weeks,” said Doug Boothe, Akorn's president and chief executive officer. “With the backdrop of the COVID-19 pandemic, our mission of bringing pharmaceutical products to patients, caregivers, and hospitals is more important than ever, and we look forward to redoubling our focus on this vital work."

The release went on to say the company will continue its normal operations and meet commitments to its stakeholders.

The company filed for bankruptcy protection in May. The company said the goal of bankruptcy action was to execute the sale of the generic pharmaceutical maker in the third quarter of 2020.

The Lake Forest, Illinois-based company operates a manufacturing plant at 1222 W. Grand Ave., which the company spent $25 million to expand in a project completed in 2018. It also operates a packaging facility on Wyckles Road which recently underwent a 30,000-square-foot expansion. The company is among the community's leading employers.

The German healthcare company Fresenius Kabi backed out of a $4.75 billion deal in 2018 amid allegations that Akorn's “representations regarding its compliance with regulatory requirements were not true and correct" and because of the "magnitude of the inaccuracies." In January 2019, the U.S. Food and Drug Administration sent a warning letter in regard to inspections of the drugmaker's Decatur plant in April and May 2018.

Drugmaker Akorn, which has Decatur operations, reaches settlement valued at $74 million in investor lawsuit

The letter said a regulator found contaminants on sterile gloves and didn't have proper procedures for stopping contamination of drugs, Reuters reported.


Recognize these Decatur places? Take our aerial photo quiz

Concerned about COVID-19?

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Related to this story

Get up-to-the-minute news sent straight to your device.

Topics

News Alerts

Breaking News