Akorn Initiated At Deutsche Bank, Notes Impressive Drug Pipeline

Deutsche Bank issued a company note on

initiating coverage on the company. Deutsche Bank rates Akorn as a Buy with a $55 price target. Analysts Gregg Gilbert and Greg Fraser wrote, "For a midcap specialty generics company, Akorn has a relatively diverse revenue base, which includes a mix of generic and branded prescription drugs, animal health products, and OTC products (branded and private label). With its large pipeline of maturing generic filings, we believe the company is well positioned for solid top and bottom-line organic growth over the next few years. We expect the company to remain aggressive on the business development front, which is not reflected in our estimates." Last year, Akorn acquired Hi-Tech and VersaPharm which broadened and diversified their portfolio into other areas of specialty generics and OTC products. Deutsche Bank believes that their gross margin profile is attractive due to their diverse product mix. Going forward, Akorn's pipeline has 87 generic applications under review and management has shown optimism that they could see FDA action on a significant number of their pending applications in 2015. Shares of Akorn closed on Tuesday at $47.73.