Akorn, a niche pharmaceutical company developing, manufacturing and marketing multisource and branded pharmaceuticals with a focus on sterile ophthalmic and injectables, will acquire Hi-Tech Pharmacal, a specialty pharmaceutical company developing, manufacturing and marketing generic and branded prescription and over-the-counter (OTC) products,  for $640 million in cash.

Hi-Tech specializes in difficult-to-manufacture liquid and semi-solid dosage forms and produces and markets a range of oral solutions and suspensions, as well as topical ointments and creams, nasal sprays, otics, sterile ophthalmics and sterile ointment and gels products. Hi-Tech's ECR Pharmaceuticals subsidiary markets branded prescription products.

Akorn will pay $43.50 per share. Akorn expects to achieve between $15 million and $20 million in annual run-rate synergies within 12 months. The combined company is expected to have annual revenues in excess of $500 million and the transaction is expected to be accretive to Akorn's non-GAAP adjusted earnings per share immediately upon closing.  

Raj Rai, Akorn's chief executive officer, said, "The acquisition of Hi-Tech will also add branded OTC products in the categories of cough and cold, nasals and topicals to Akorn's existing TheraTears brand of eye care products."