Generic drugmaker Akorn files for bankruptcy

Akorn, a generic drugmaker based in Lake Forest, Ill., has filed for Chapter 11 bankruptcy, the company said May 20. 

It listed between $1 billion and $10 billion in debt and assets in its bankruptcy petition, according to Bloomberg Law

Eric Rosenthal, senior director with Fitch, told Becker's: "Akorn’s bankruptcy lifts the trailing twelve-month default rate to 3.6%, the highest rate since March 2015. This is the 10th loan default this month, pushing the May total to $13.5 billion, the highest monthly volume since April 2014. Since the beginning of April, there have been 28 loan defaults for $22.7 billion."

Last year, the FDA issued warning letters to Akorn about manufacturing violations at two of its plants. 

Fresenius SE, a German drugmaker, had offered in 2018 to purchase the company for $4.3 billion, but backed out of the deal after finding issues with its production, quality control and drug testing, Bloomberg Law reported. 

Akorn said it plans to continue operating as normal during the bankruptcy process.

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