Akorn Sets New Stock Buyback Program, Beats Profit And Sales Expectations

Akorn Inc. said Thursday that it initiated a new $200 million share repurchase program. At Wednesday's closing price of $33.01, that would allow the generic drug company to buy back about 5% of its shares outstanding. Separately, Akorn reported second-quarter earnings of $62.0 million, or 50 cents a share, up from $32.5 million, or 27 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came in at 58 cents, above the FactSet consensus of 55 cents. Revenue rose to $280.7 million from $220.9 million, beating the FactSet consensus of $273.0 million. The company now expects 2016 revenue to be at the upper end of its previously provided guidance of $1.06 billion to $1.08 billion, and adjusted EPS to be at the high end of its $2.10 to $2.20 outlook. The stock, which was still inactive in premarket trade, has lost 12% year to date, while S&P 500 has gained 5.9%.