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Akorn CEO to retire after drugmaker fails to salvage Fresenius merger deal

Reuters  |  WILMINGTON, Del 

By Tamara Mathias

WILMINGTON, Del (Reuters) - Inc said late on Friday its would retire following the drugmaker's inability to salvage its takeover deal with Germany's SE.

The move comes after the Supreme Court on Friday upheld a decision by a lower court to allow to walk away from its over $4 billion acquisition of that sent shares of the U.S generic drugmaker down more than 30 percent in regular trading.

said that its will retire but will remain in his post till a successor is named. The company said a for a new is underway.

terminated the merger deal in April, a year after agreeing to acquire Akorn, citing evidence of misconduct in reporting of data to U.S.

Akorn then filed a lawsuit against Fresenius over the termination in the Chancery court, but the ruled in favour of the German company in what was considered a landmark decision as judges have generally held buyers to merger deals.

"Deal lawyers are sharpening their pencils right now to figure out how to rewrite these clauses to make it either harder or easier for bidders to walk away from future deals," Joseph Grundfest, at said.

Akorn had argued that Fresenius suffered buyer's remorse and directed his lawyers to construct a case to end the deal.

"Most people ...had determined that this was pretty much a long shot (for Akorn)," said.

"Now they have to get their house in order and ... basically correct the problems that led to the deal falling apart in the first place and operate in what is still a challenging generic drugs market."

Akorn shares closed down 24 percent on Friday. The stock is down nearly 87 percent this year.

(Reporting by in Wilmington, Delaware and and Saumya Joseph in Bengaluru; Editing by Shailesh Kuber)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, December 08 2018. 09:55 IST