Once val­ued at $4B, an em­bat­tled Ako­rn — nurs­ing a mar­ket cap of rough­ly $37M — files for bank­rupt­cy

Scarred by a se­ries of FDA warn­ings, a scorned buy­er and the un­cer­tain­ty of Covid-19, Ako­rn is fi­nal­ly throw­ing in the tow­el.

On Wednes­day, the spe­cial­ty gener­ic drug­mak­er said it was fil­ing for Chap­ter 11, weeks af­ter it said it had giv­en up on find­ing it­self a buy­er amidst the broad­er un­cer­tain­ty of Covid-19.

Some of Ako­rn’s lenders have agreed to a stalk­ing horse bid to pur­chase the Lake For­est, Illi­nois-based drug­mak­er’s as­sets, set­ting a base­ment price for the court-su­per­vised sale of the busi­ness. On the dock­et are the com­pa­ny’s US busi­ness and sub­sidiaries — Ako­rn’s en­ti­ties in In­dia and Switzer­land are ex­empt from the bank­rupt­cy process. Ako­rn hopes to com­plete the sale process by the third quar­ter.

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