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Akorn PharmaceuticalsBy: Lauren Blumberg

Niche pharmaceutical company that develops, manufactures, and markets generic and branded prescription pharmaceuticals Founded in 1971Has acquired Taylor Pharmacal (1992)Pasadena Research Laboratories (1996)Advanced Remedies, Inc. (1998)Advanced Vision Research (2011)VersaPharm (2014)Hi-Tech Pharmacal (2014)Hettlingen Switzerland ( 2014)Akorn, Inc.

Hi-Tech Pharmacal Timeline

1980201019902000____________{1981Hi-Tech Pharmacal Founded

April 1983Hi-Tech Incorporated in NY

August 1992Hi-Tech goes Public

August 1996Hi-Tech Incorporated in Delaware

Dec 2007Hi-Tech Acquires Midlothian LaboratoriesOct 2008Dorzolamide HCl & Timolol Maleate ApprovedJan 2008Fluticasone Approved

March 2009Hi-Tech Acquires ECR Pharmaceuticals

May 2011Hi-Tech Divested Midlothian Laboratories

April 2014Hi-Tech Acquired by Akorn

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AKORN- AKRX: NASDAQ

Taylor Pharmacal founded in Decatur, Illinois1948

Akorn Timeline

1971Akorn Ophthalmics is founded in Albita Springs, Lousiana

1992Akorn acquires Taylor Pharmacal

1996Akorn acquires Pasadena Research Laboratories and its injectable products

2007Akorn is listed on the NASDAQ exchange

2012Akorn acquires manufacturing assests in India from Kilitch Drugs2014Akorn acquires VersaPharm

1998Akorn acquires Advanced Remedies Inc. in Somerset,NJ2011Akorn acquires Advanced Vision Research

19401950196019701980199020002010

2013-2014

Akorn acquires Hi-Tech Pharmacal

Akorn acquires 5 branded oplythalmic products

2014

CorporateChief Executive Officer: Raj RaiB. Tech degree in Mechanical Engineering - REC Warangal in IndiaMBA in Finance - Wayne State University15 years of healthcare services

Chief Financial Officer: Timothy Dick

BBA in Accounting - University of Texas at Tyler

MBA in Finance - University of Michigans Ross School of Business

Previously worked for Walgreens-Option Care,Inc.

CorporateChief Operating Officer: Bruce Kuntinsky, Pharm.D.Doctor of Pharmacy Degree University of MichiganPreviously VP of Strategic Solutions for WalgreensOver 20 years of healthcare experienceSenior VP, Global Business Development: Sean BrynjelsenBS Biochemistry ; MS Chemistry University of Illinois

MBA University of Notre Dame

Over 15 years experience with branded & generic pharmaceuticals

Corporate

Executive VP, Global Quality Assurance & Alliance Management: Mark SilverbergB.S. in Biology Marquette UniversityJoined Akorn in 200534 years experience

Executive VP, Global Operations: Steve LichterB.S in Science Illinois UniversityMBA Northern Illinois University34 years with Abbot pharmaceuticals in various management positions from packaging supervision to Corporate Operations management.

CorporateSenior VP,General Counsel and Secretary: Joseph BonaccorsiBS degree in Civil litigation lawNorthwestern UniversityJD Loyola University School of LawJoined Akorn from Walgreens-Option Care, Inc.

Senior VP, Global Sales / Marketing and National Accounts: John R. SabatOver 32 years in the Pharmaceutical IndustryResponsible for Akorns National Accounts programWidely recognized as a leader

Akorn MarketingRetail Pharmacies

Ophthalmologists

Optometrists

Physicians

Veterinarians

Group Purchasing Organizations Hospitals

Clinics

Wholesalers

Distributors

Government Agencies

Akorn ProductsSterile and non-sterile dosage forms including:OphthalmicsInjectablesOral liquidsOticsTopicalsInhalantsNasal sprays

Akorn LocationsHeadquarters - Lake Forest, IL., Gurgaon, India., Ann Arbor, MI.Research and DevelopmentVernon Hills, ILWarminster, PACopiague, NYManufacturingDecatur, ILSomerset, NJAmityville, NYPaonta Sahib, IndiaHettlingen, Switzerland

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WHERE IS AKORN LOCATED?HettlingenPaonta SahibGurgaonSomersetWarminster

Amityville

CopiagueAnn Arbor

Decatur

Gurnee

Lake Forest

Vernon Hills

OfficesR&DWarehouseMFG

Amityville BuildingsBuildingApprox. Sq. Ft.Occupancy219 Dixon Ave.8,000Offices225 Dixon Ave.21,000Warehouse; Raw material laboratory369 Bayview Ave.40,000Non-sterile compounding; Non-sterile packaging10 Edison St.35,000Warehouse; Offices; Maintenance shop; Stability chambers13 Edison St.75,000Warehouse26 Edison St.21,000Sterile & narcotic compounding & packaging; QC & Micro. laboratories132 Lincoln St. Copiague, NY18,000R&D labs, offices & pilot plant

369 Bayview AvenueLine 3 Line 14

Line ED 2 Line 12 Line 11Line 13 Line 1Line 8Line 6 Line 7 Line 10Non-Sterile CompoundingPharmacyWarehouseBulk Storage TanksLoading Docks

26 Edison StreetSterileManufacturingSterileFillingPackagingNon-SterileCompoundingSecond Floor:QC LabRaw Mtl.LabMicro. Lab Line ED 3 UtilitiesVaultLine ED 4

Current Events Updates

Focus:JDE(ERP) implementation:Warehouse shipping complete on time - April 1st Switch on Schedule - May 1st Expecting a routine FDA auditOperating budget

Key Facts:Units produced 9.6MM of the planned 34MM annual units (about 1.5MM ahead for the quarter)Corporate compliance audit performs first week of Feb response is in progressSterile plant:Lidocaine Jelly moved to SomersetDorzolamide products are in process to move to Hettlingen

Commercial:Lost fluticasone units (5-6MM units) Gained 1.2MM in other productsUnit Dose products - Added third crew to run all three work centersProduct launches:Promethazine VC plain with Codeine planned for June 2015Promethazine Plain, with Dextro and Codein (three skus) existing products approved in updated formulation. Plastic bottles planned for Aug 2015Plastic allows full line extension of the Promethazine products (compared to glass in past) and will allow savings in COGSLaunched Amantadine and APAP with Codeine in Unit DosePreparing to Launch Sulfa in Unit Dose

RD activities/ Exhibit batches:R&D Amityville:Benzyl AlcoholPlacebo and exhibit batches made for SucralfateMorphine Oral SolutionOxycodone HCl 5 mg (formula 961)Oxycodone HCl 100 mg (formula 964)RD Versapharm:Flurandrenolide Lotion.Desonide Ointment.Betamethasone and Betamethasone augmented

Storage issues:Increasing needs for storage. 4400 pallets on site versus 3400 pallets at rental warehouses.Personnel:Hired new Product Launch Manager and Manager of Investigations.Still recruiting Manager of Validation, Training Manager, GMP coordinatorSterile plant:Lidocaine Jelly moved to Somerset.Dorzolamide products are in process to move to Hettlingen.

Facility Improvements

Major Engineering Capital Projects( $ 100,000)In-ProgressPackaging Area Renovation $1,200,000R&D DEA Vault $214,000Mesa Labs Torque Testers $137,000Vision Systems $130,000

2015 Planned*

New Boiler Plant $1,200,000Sterile HVAC Unit Replacement $430,000Line 13 Case Packer $390,000Cafeteria for Employees $275,000CII Products Vault (26 Edison)$200,000Steam Distribution System Upgrade $150,000Versa Pharma Generator $150,000Packaging Washroom Upgrade$100,000 * Total 2015 Capital Plan*$4,000,000

Social and Wellness

25EAC (Eemployee Advisory Committee):Established in 2015.There to present you at the workplace.Talk to your representativeBe active Participate in planning social events:PicnicEnd of Year Party Plan a charity

Cafeteria project:RenovationFood contractor

Questions?

Next Employee survey results!