BUFFALO GROVE, Ill.--(BUSINESS WIRE)--Akorn, Inc. (NASDAQ: AKRX - News) today announced the signing of an Exclusive Distribution Agreement with Massachusetts Biologic Laboratories (MBL), a publicly operated, FDA-licensed vaccine manufacturer located in Jamaica Plain, MA for Tetanus Diphtheria Vaccine. Massachusetts Biologic Laboratories will continue to distribute Tetanus Diphtheria Vaccine free of charge to the residents of the Commonwealth of Massachusetts. The three-year Exclusive Agreement begins September 1, 2007 and Akorn expects to begin recognizing revenue on that date.
Over the course of the three-year Agreement, Akorn expects to recognize revenue in excess of $150 million with gross margins typical for a vaccine distributor. The contribution to earnings per share is estimated to be $0.10 -- $0.11 per year. Akorn will initially market a multiple-dose vial and expects to introduce a single-dose, preservative-free vial in early 2008. The Agreement provides Akorn with exclusive marketing and distribution rights in the United States and Puerto Rico. According to recent market data, there are approximately 15 million Tetanus Diphtheria vaccinations per year.
Arthur S. Przybyl, Akorn’s President and Chief Executive Officer stated, “We are excited to enter into this Exclusive Agreement with Massachusetts Biologic Laboratories, and look forward to introducing MBL’s new single-dose, preservative-free Tetanus Diphtheria vaccine. Our collaboration with MBL represents an important milestone for Akorn, as we launch our first commercial vaccine product and build out our Biologics and Vaccines business segment.
Beginning at 11:00 a.m. (Eastern Time) on Tuesday, March 27, 2007, Arthur S. Przybyl, President and Chief Executive Officer will host an Investor Conference Call to discuss the Exclusive Distribution Agreement with Massachusetts Biologic Laboratories. The dial-in numbers are (866) 454-4208 for domestic callers and (913) 312-1238 for international callers.
What: Akorn, Inc. Investor Conference Call When: Tuesday, March 27, 2007 at 11:00 a.m., Eastern Time Website: Live webcast available at: http://www.videonewswire.com/event.asp?id=38701 Call-in #: (866) 454-4208 for domestic callers (913) 312-1238 for international callers A replay of the conference call will be available for 30 days using the Website link noted above following the call.
About Akorn, Inc.
Akorn, Inc. manufactures and markets sterile specialty pharmaceuticals. Akorn has manufacturing facilities located in Decatur, Illinois and Somerset, New Jersey and markets and distributes an extensive line of hospital and ophthalmic pharmaceuticals. Additional information is available at the Company’s website at www.akorn.com.
About Massachusetts Biologic Laboratories.
Established over 100 years ago to serve the public health interests of the Commonwealth of Massachusetts, the Massachusetts Biologic Laboratories (MBL) develops and manufactures vaccines and other biologic products; since 1997, MBL has been a part of the University of Massachusetts. The MBL is the only publicly operated, FDA-licensed, vaccine manufacturing facility in the country still operated by a state government agency. Throughout its history, the labs have introduced into general statewide use vaccines to prevent diphtheria, pertussis, tetanus and other diseases.
In 2005, MBL opened a new facility with a state-of-the-art aseptic filling operation that will fill vials of vaccine and other therapeutics manufactured at the MBL. The building also houses a major new monoclonal antibody manufacturing operation. Both aseptic filling and monoclonal antibody manufacturing capacity are in short supply in the United States; the new facility will allow MBL to continue to fill its own products as well as offer this limited resource for both private and public needs.
Materials in this press release may contain information that includes or is based upon forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Forward-looking statements give our expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future steps we may take, prospective products, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results.
Any or all of our forward-looking statements here or in other publications may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results. Consequently, no forward-looking statement can be guaranteed. Our actual results may vary materially, and there are not guarantees about the performance of our stock.
Any forward-looking statements represent our expectations or forecasts only as of the date they were made and should not be relied upon as representing our expectations or forecasts as of any subsequent date. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise, even if our expectations or forecasts change. You are advised, however, to consult any further disclosures we make on related subjects in our reports filed with the SEC. In particular, you should read the discussion in the section entitled “Cautionary Statement Regarding Forward-Looking Statements” in our most recent Annual Report on Form 10-K, as it may be updated in subsequent reports filed with the SEC. That discussion covers certain risks, uncertainties and possibly inaccurate assumptions that could cause our actual results to differ materially from expected and historical results. Such factors include, but are not limited to, risks and uncertainties relating to the resolution of the FDA compliance issues at our Decatur, Illinois manufacturing facility. Other factors besides those listed there could also adversely affect our results.
Contact: Akorn, Inc. Arthur S. Przybyl President and CEO (847) 279-6100
Source: Akorn, Inc.
