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Akorn Reports 2010 Fourth Quarter and Year-End Financial Results
-Achieves Annual Core Revenue Growth of 81%-
LAKE FOREST, Ill.--(BUSINESS WIRE)--March 1, 2011--Akorn, Inc. (NASDAQ: AKRX), a niche generic pharmaceutical company, today reported financial results for the fourth quarter and year ended December 31, 2010.
Raj Rai, Chief Executive Officer commented, “We had another great quarter and ended the year on a positive note. The year 2010 was a very successful year as in a relatively short period of time we have strengthened the foundation of our company. Going forward, we plan to accelerate growth by investing in R&D, making opportunistic and strategic acquisitions and finally, increasing capital expenditures to expand capacity and enhance the productivity of our plants.”
2010 Key Highlights and Accomplishments
- Core business revenue growth of 60% over the prior year quarter and annual 2010 core revenue growth of 81% over the prior year. Akorn’s core business consists of the ophthalmic, hospital drugs & injectables and contract services segments.
- Sustained gross margins of 53% for the fourth quarter of 2010, consistent with third quarter 2010 results.
- Sale of the Akorn-Strides, LLC joint venture product portfolio to Pfizer for $63.2 million. Akorn Inc. owns 50% of the joint venture and received $35 million in proceeds from the sale.
- Prepaid high-cost subordinated debt of approximately $5.8 million during the fourth quarter of 2010. The Company is now debt free and will realize annual interest expense savings of approximately $0.9 million.
- Initiated R&D strategy and completed the development of 16 new products.
- Filed 5 new internally developed ANDAs with a combined market value of $400 million.
- In-licensed four filed partner ANDAs with a combined market value of $900 million during the year, of which two having a combined market value of $170 million were in-licensed during the fourth quarter.
- Launched Erythromycin ophthalmic ointment and injectable Hydromorphone.
Consolidated revenue for the fourth quarter of 2010 was $24.0 million, up 32% over the prior year quarter consolidated revenue of $18.2 million. Fourth quarter 2010 core business revenue was $24.0 million, up 60% over the prior year quarter core revenue of $15.0 million. The increase in core business revenue was the result of the continued growth of products launched in 2010, record high contract services revenue, and an increase in antidote product sales consistent with the expiration of previously sold lots.
Consolidated revenue for the year 2010 was $86.4 million, up 14% over the prior year consolidated revenue of $75.9 million. Core business revenue for the year 2010 was $81.2 million, up 81% over the prior year core revenue of $44.8 million.
Consolidated gross margin for the fourth quarter of 2010 was 53% compared to 33% in the comparable prior year period. Fourth quarter core business gross margin was 53% compared to 37% in the comparable prior year period. Sustained improvements in gross margin are the result of favorable product mix, selected price increases, higher utilization of plant capacities and the launch of new, higher margin products in 2010.
The following information was filed by Akorn Inc (AKRX) on Tuesday, March 1, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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