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Why Akorn, Inc. (AKRX) Shares Rallied on Monday

After surging sharply on Friday, Akorn, Inc. (NASDAQ:AKRX) has rallied again on Monday, this time by 6.18% after the company confirmed that it is currently in discussions with a subsidiary of Fresenius SE about a potential acquisition of Akorn. The news confirms a Bloomberg report on Friday that said Fresenius SE ‘is weighing a bid’ to buy Akorn. German Fresenius SE, the largest publicly listed health-care provider in Europe, is in acquisition-expansion mode after having bought Spanish health provider Salud Holding SLU for around $6.11 billion last year.

In terms of potential deal price, analysts are divided. On one hand, Chris Cooper of Jefferies thinks a valuation of 4.5x-5x sales could net $36-$40 per share if Fresenius made a bid. William Blair is more optimistic, suggesting a potential buyout of $36-$48 per share.  On the other hand, Randall Stanicky of RBC Capital thinks shares already reflect around full-take over value.

What Does The Smart Money Sentiment Say?

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29 elite funds were long Akorn, Inc. (NASDAQ:AKRX) at the end of December, up one fund from the previous quarter.

The Bottom Line

Akorn, Inc. (NASDAQ:AKRX) shares have rallied again due to the company confirming that it is in talks about a potential sale to Fresenius. For more reading, check out ‘11 Most Sold Non Prescription Drugs‘.

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