Fresenius Terminates Merger Agreement With Akorn Over Data Breaches

Fresenius (FSNUY) decided to terminate the company’s merger agreement with Akorn (AKRX), citing Akorn’s “failure to fulfill several closing conditions.”

The company said in a statement, “Fresenius’ decision is based on, among other factors, material breaches of FDA data integrity requirements relating to Akorn’s operations found during Fresenius’ independent investigation. Fresenius offered to delay its decision in order to allow Akorn additional opportunity to complete its own investigation and present any information it wished Fresenius to consider, but Akorn has declined that offer.”

Fresenius also confirmed its guidance for 2018. The company continues to expect a sales growth of 5%-8% in constant currency. Group net income is expected to increase by 6%-9% in constant currency.

On Saturday, Fresenius Medical Care announced the sale of Sound Inpatient Physicians Holdings. The expected pre-tax book gain of around EUR 800M on the transaction is excluded from its 2018 outlook.