Piper Jaffray Comments on Akorn Inc After Meeting With Top Management

Piper Jaffray has published a report on Akorn Inc AKRX after spending time with top management. In the report, Piper Jaffray wrote, "We just spent time with Akorn senior management. AKRX noted that annual growth for its base generics business (i.e., ophthalmics and injectables) is running around 10%-15%, with about a third of the growth coming from favorable pricing. This does not include the impact from the Advanced Vision Research (AVR) acquisition, or impact from the build-out of the over-the-counter (OTC) eye care business, including private label brands (management noted that a CVS store brand eye care product made by AKRX is launching). With the expansion of the generics portfolio, plus the build-out of the OTC business, we continue to believe that the prospects for dramatic top-line and EPS growth for 2011 and beyond are high (we estimate a 2011-2014 EPS CAGR of 36%). We reiterate our Overweight rating and $10 price target." Piper Jaffray rated Akorn an Overweight with a price target of $10.00. Akorn closed Thursday at $7.35.