NEW YORK (TheStreet) -- Shares of Akorn Inc.
(AKRX - Get Report) are up 4.86% to $36 in pre-market trade after the pharmaceutical company won U.S. antitrust approval to buy specialty prescription drug company VersaPharm on condition it sell its rights to a generic tuberculosis drug, according to the FTC, Reuters reports.
In May, Akorn said it planned to buy VersaPharm for $440 million, citing the privately held company's work in developing and marketing drugs to treat hemophilia and tuberculosis, among other conditions.
The companies agreed to divest Akorn's right to make a generic version of the tuberculosis drug rifampin. VersaPharm is one of three companies that make the drug, the FTC said.
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- The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 22.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.46, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 237.70% to $23.38 million when compared to the same quarter last year. In addition, AKORN INC has also vastly surpassed the industry average cash flow growth rate of -66.20%.
- The gross profit margin for AKORN INC is rather high; currently it is at 56.91%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 10.84% trails the industry average.
- Compared to its closing price of one year ago, AKRX's share price has jumped by 139.11%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full analysis from the report here: AKRX Ratings Report