Akorn Pharmaceuticals shuts down, lays off all employees
Akorn Pharmaceuticals is closing all U.S. sites and laying off its entire workforce after failing to find a potential buyer for the company.
Akorn, which develops, manufactures and markets specialty pharmaceuticals, including prescription, consumer health and animal health products, put itself up for sale in 2022, but never received an appropriate bid that would address its outstanding liabilities, according to a letter announcing the shut down and layoffs by Akorn President and CEO Douglas Boothe.
The letter, which was published by the Herald-Review, announced Akorn will file for chapter 7 bankruptcy. As part of that filing, the company shut down all operations and lay off all employees, effective Thursday, Feb. 23, 2023.
“I truly regret that these actions have become necessary,” Boothe wrote in the letter to employees. “This is a shock. It will take some time to absorb the news and what it means to you and your colleagues.”
Employees were also given a packet with resource information amid the layoffs. The layoffs are permanent, Boothe wrote.
With Akorn shutting down, there are fears that the albuterol shortage in the United States could get worse, The Washington Post reported. One of Akorn’s facilities manufactured liquid albuterol, used by hospitals for nebulizers, and the shutdown leaves only one remaining domestic supplier of the medication, the Post said.
Akorn has been struggling for the past few years, after filing voluntary chapter 11 bankruptcy in 2020 as it attempted to sell itself to resolve debt issues with lenders. The company also previously had a potential $4.3 billion acquisition deal with Fresenius, but the deal fell through. Plus, Akorn agreed to pay $7.9 million to resolve allegations that it caused the submission of false claims to Medicare Part D, in violation of the False Claims Act, for three generic drugs that were no longer eligible for Medicare coverage last year.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."