Akorn Files for Chapter 7 Bankruptcy; to Close All US Sites

Akorn Pharmaceuticals, a maker of generic and branded drugs, announced it is ceasing operations. The company, which offered more than 20 ophthalmic products, has filed for chapter 7 bankruptcy and is shutting down US operations. The news was first reported by Fierce Pharma. 

According to a letter posted by the Herald & Review in Illinois, Akorn CEO Douglas Boothe stated that Akorn initiated a process to sell the company but did not receive an appropriate bid, forcing the company to close operations and lay off the remaining workforce. 

"Despite the best efforts from all parties and interest from potential buyers, the company did not receive an appropriate bid that would address outstanding liabilities," Mr. Boothe stated. "In light of the company running at a loss for some time, the company's lenders will not provide the additional financing required to continue to run the business."

In March 2022, Théa Pharma announced the completion its acquisition of seven branded ophthalmic products from Akorn. Under the deal, Théa acquired established glaucoma therapies Zioptan, Cosopt, Cosopt PF, Betimol, Azasite, Akten, and the ocular surface repair agent AcellFX. Financial terms of the deal were not disclosed.