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Akorn buyout said to be ‘imminent’

April 19, 2017

Akorn, Inc. AKRX 0.58% shares are drifting higher by 0.27 percent (about $0.10 per share) Wednesday after jumping 3.2 percent Tuesday following a report the company was on the verge of a buyout deal.

Akorn shares jumped more than 3 percent in a matter of minutes on Tuesday afternoon after StreetInsider.com reported a buyout by pharmaceutical company Frensius Kabi, a subsidiary of Frensius Medical Care AG & Co. (ADR) FMS 0.33%, was “imminent.”

Related Link: There Was An Unusual Options Trade Prior To Akorn Takeout Chatter

The Akorn/Frensius rumor first surfaced on April 7 and was reported by Bloomberg. Hours prior to the Bloomberg headline, Benzinga alerted its pro subscribers to an unusually large Akorn call purchase on the options market.

Akorn shares spiked from around $27 to $30 roughly 3.5 hours later when the Bloomberg story broke.

On April 10, Akorn confirmed it was in buyout discussions with Frensius.

The next day, Leerink analyst Jason Gerberry told clients the buyout price for Akorn could be as high as $34, but the downside if a deal falls through could be as low as $22.

So far, an official deal has yet to be announced, but Akorn shares are now up 38.5 percent since April 1.

Since April 13, Benzinga has issued three options alerts related to bullish call buying related to Akorn:

  • April 13, 2:32 p.m.- Akorn May 35.0 Calls: 960 @ ASK $0.90: 7626 traded vs 14k OI: $32.64 Ref
  • April 17, 1:24 p.m.- Akorn Apr 30.0 Calls: 1000 @ ASK $2.60: 1029 traded vs 1038 OI: $31.97 Ref
  • April 18, 1:16 p.m.- Akorn Apr 32.5 Calls Sweep: 832 @ ASK $1.051: 1777 traded vs 1702 OI: $32.11 Ref

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