Akorn, Inc. Signs Letter of Intent with Azad Pharma AG to Develop and Supply Three ANDA Injectable Drug Products.

BUFFALO GROVE, Ill. -- Akorn, Inc. (AMEX:AKN) today announced that it has signed a Letter of Intent with Azad Pharma AG, located in Toffen Switzerland, to develop and supply three ANDA injectable drug products for critical care medicine. The Letter of Intent anticipates executing a Definitive Agreement within ninety days upon Terms and Conditions agreeable to both Akorn and Azad.

The three ANDA drug products will focus on the anesthesia and anemia markets, and have a current market size of approximately $900 million. Azad will be responsible for the development and manufacturing of all three products. The ANDAs will be held by Akorn and will be exclusively marketed and distributed by Akorn in both the United States and Canada.

Arthur S. Przybyl, Akorn's President and Chief Executive Officer stated, "We are excited to pursue the development and commercialization of these three drugs with our newest partner, Azad Pharma. These drug products continue to complement the strategic approach of our other drugs already in development."

Mike Baronian, Azad Pharma's Chairman and Chief Executive Officer stated, "Azad has been engaged in developing and marketing active pharmaceutical ingredients since its inception. The partnership with Akorn follows the strategic decision that Azad made last year to enter the finished dosage market by first concentrating on sterile specialty products and secondly by partnering with distribution companies that are well focused and have a good reputation in their respective markets, such as Akorn. We look forward to working with Akorn on this business venture and continuing to establish our strategic partnership on the three injectable products, along with other key molecules and finished dosage products in the very near future."

About Akorn, Inc.

Akorn, Inc. manufactures and markets sterile specialty pharmaceuticals. Akorn has manufacturing facilities located in Decatur, Illinois and Somerset, New Jersey and markets and distributes an extensive line of hospital and ophthalmic pharmaceuticals. Additional information is available at the Company's website at www.akorn.com.

About Azad Pharma AG

Azad Pharma AG is a recognized generic manufacturer, principally in the fields of ophthalmology, prostaglandins, and parenteral drugs, both with regard to the supply of API and finished dosage form finished products. Additional information is available at the Company's website at www.azad.ch.

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