Akorn Files for Bankruptcy After Failed Takeover, FDA Warnings

Generic drug maker Akorn Inc. filed for bankruptcy after unease surrounding its quality control methods resulted in a failed takeover bid and warning letters from the Food and Drug Administration.

The Lake Forest, Ill.-based company listed as much as $10 billion of debt and $10 billion of assets in its Chapter 11 petition, filed on Wednesday in the Delaware bankruptcy court.

In December of 2018, Fresenius SE backed out of its $4.3 billion offer for the company after it discovered issues with Akorn’s pharmaceutical production, quality control and drug testing. Then, in 2019, the FDA issued warning letters to Akorn ...