NEW YORK (TheStreet) -- Shares of Akorn Inc. (AKRX) 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.
Watson Laboratories, a subsidiary of Actavis (ACT), agreed to buy Akorn's rights to rifampin, the FTC said.
TheStreet Ratings team rates AKORN INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AKORN INC (AKRX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."