Akorn, Inc. Signs a Letter of Intent with Cipla, Ltd. to Develop and Supply an Oral Anti-Infective ANDA Drug Product.

BUFFALO GROVE, Ill. -- Akorn, Inc. (AMEX:AKN) today announced that it has signed a Letter of Intent with Cipla, Ltd., a leading Indian pharmaceutical company located in Mumbai, India, to develop and supply an oral anti-infective ANDA drug product. The Letter of Intent anticipates executing a Definitive Agreement within ninety days upon Terms and Conditions agreeable to both Akorn and Cipla.

The oral ANDA anti-infective drug product is distributed and used primarily in United States hospitals and has a current market size of approximately $100 million. Cipla will be responsible for the development and manufacturing of the drug, and Akorn will be responsible for the ANDA regulatory submission and clinical development. Akorn will pay Cipla product development milestone fees, agrees to purchase the product from Cipla, and will own the ANDA with exclusive marketing rights in the United States.

Arthur S. Przybyl, Akorn's President and Chief Executive Officer stated, "We are excited to enter into this agreement with Cipla. Over the years, Cipla has demonstrated its ability to successfully develop and manufacture drug products for the United States marketplace. This product is an excellent fit for Akorn's distribution channel strategy because the product sales are primarily driven by hospitals."

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.

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