Akorn, Inc. announced the signing of an exclusive distribution agreement with Massachusetts Biologic Laboratories (MBL), a publicly operated, FDA-licensed vaccine manufacturer located in Jamaica Plain, MA for Tetanus Diphtheria Vaccine.
Massachusetts Biologic Laboratories will continue to distribute Tetanus Diphtheria Vaccine free of charge to the residents of the Commonwealth of Massachusetts. The three-year exclusive agreement begins September 1, 2007 and Akorn expects to begin recognizing revenue on that date.
Over the course of the three-year Agreement, Akorn expects to recognize revenue in excess of $150 million with gross margins typical for a vaccine distributor. The contribution to earnings per share is estimated to be $0.10 -- $0.11 per year. Akorn will initially market a multiple-dose vial and expects to introduce a single-dose, preservative-free vial in early 2008. The Agreement provides Akorn with exclusive marketing and distribution rights in the United States and Puerto Rico. According to recent market data, there are approximately 15 million Tetanus Diphtheria vaccinations per year.
Arthur S. Przybyl, Akorn's president and chief executive officer stated, "We are excited to enter into this Exclusive Agreement with Massachusetts Biologic Laboratories, and look forward to introducing MBL's new single-dose, preservative-free Tetanus Diphtheria vaccine. Our collaboration with MBL represents an important milestone for Akorn, as we launch our first commercial vaccine product and build out our Biologics and Vaccines business segment.
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.