The company is investing $5.5 Billion towards the growth.

Pharmaceutical company Fresenius Kabi, a subsidiary of Fresenius SE & Co. KGaA headquartered in Bad Homburg, Germany, agreed to spend approximately $5.5 billion to purchase specialty generic pharmaceutical company Akorn (Lake Forest, Illinois) and the biosimilars business of Merck KGaA. 

Akorn, which has a broad range of prescription and over-the-counter products, ophthalmic and respiratory drugs in many delivery formats and a pipeline with a QuintilesIMS market value of $9.3 billion, will be acquired for $4.75 billion. Fresenius Kabi will also supplement its contract sterile manufacturing services offering with this purchase. The deal is subject to regulatory review and approval by Akorn’s shareholders but is expected to close in early 2018.

Fresenius Kabi is also paying $733 million for Merck KGaA’s biosimilars business (located in Switzerland), including $186 million upfront and $547 million in milestone payments, plus a single-digit percentage royalties on future product sales. The business comes with annual sales of ~$30 billion and several products under development, largely for the treatment of oncology and inflammatory disorders. Also as part of the deal, the two companies agreed to participate in supply and service agreements, including drug development support and manufacturing. This transaction is expected to be finalized in the second half of 2017 once it receives regulatory approval.