Long Position on AKRX @ $16.20 on 8/15/2013 (Momentum)

Akorn (AKRX) engages in the manufacture and marketing of diagnostic and therapeutic ophthalmic pharmaceuticals products, hospital drugs, and injectable pharmaceuticals in the United States and internationally.

It offers products in various specialty areas, including ophthalmology, antidotes, anti-infectives, pain management, anesthesia, and vaccines.

The company’s Ophthalmic segment markets diagnostic products, including mydriatics and cycloplegics, anesthetics, topical stains, gonioscopic solutions, angiography dyes, and others primarily for use in the office setting. This segment also offers therapeutic products, such as antibiotics, steroids, steroid combinations, glaucoma medications, decongestants/antihistamines, and anti-edema medications to wholesalers, chain drug stores, and other national account customers; and non-pharmaceutical products, which include various artificial tear solutions, preservative-free lubricating ointments, and eyelid cleansers.

In addition, the Ophthalmic segment provides a line of over-the-counter dry eye and other eye health products principally under the TheraTears brand name through a chain drug stores and big box retailers, as well as directly to optometrists, ophthalmologists, and other eye care practitioners and clinics. Its Hospital Drugs & Injectables segment provides a line of hospital drug and injectable pharmaceutical products comprising antidotes, anti-infectives, controlled substances for pain management and anesthesia, and other pharmaceutical products to hospitals through the wholesale distribution channel.

The company’s Contract Services segment manufactures ophthalmic and injectable pharmaceutical products for third party pharmaceutical customers based on their specifications. 

Shares have formed a bullish "flag" following the company's better than expected results.

52-Week Trading Range:  $11.73 to $16.39

Entry Point:  $16.20

Stop Loss: $15.35

Target Price:  $17.82

Updates

8/27/2013 10:03:11 AM

AKRX exceeded our target price. Position closed at $18.33.

Position closed on 8/27/2013 at price of $18.33 with a 13.15% gain in 12 days.

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