BERLIN, May 18 (Xinhua) -- German medical technology company Fresenius defended the recent cancellation of the takeover of U.S. pharmaceutical company Akorn on Friday.
Speaking at Fresenius' annual general meeting (AGM) in Frankfurt, the company's chief executive officer Stephan Sturm emphasized that the decision to withdraw from the deal worth 4.4 billion euros (5.2 billion U.S. dollars) was "not arrived at easily."
Ultimately, however, it was the "logical outcome" in light of serious concerns that Akorn had breached of regulations set by the local Food and Drug Administration (FDA) in the development of drugs.
Sturm further rejected accusations that his company had failed to scrutinize its take-over target sufficiently before launching a formal acquisition process.
"That was the most intensive examination which I have ever experienced at Fresenius," the CEO told press. He highlighted in this context that Akorn was a publicly-listed company which stood in direct competition with the U.S. Fresenius-subsidiary Kabi, requiring the completion of a comprehensive due-diligence process on behalf of management.
Following the news of the collapse of the deal, Akorn has announced legal action against Fresenius for its last-minute withdrawal from the planned acquisition. The U.S. company insists that none of the evidence encountered by investigators has negative implications for its business model and consequently rejects claims that there are sufficient grounds to cancel the sale.
Akorn argues that the issues with data integrity cited by Fresenius are not uncommon in its line of business and that the German company was merely relying on related accusations as an excuse to retreat from the transaction out of ulterior financial motivations.
By contrast, Sturm said on Friday that Fresenius' cancellation was "correct and well-justified". Noting that he had expected a legal challenge by Akorn, the CEO added that a "court in the U.S. will now have to reach a decision."
Sturm announced that Fresenius will continue to grow its presence in the U.S. regardless of the setback it had experienced during the cancelled Akorn takeover.
