Long Position on AKRX @ $22.98 on 3/3/2017 (Momentum)

Akorn, Inc. (AKRX) is a specialty generic pharmaceutical company.

The company develops, manufactures, and markets generic and branded prescription pharmaceuticals, as well as private-label over-the-counter (OTC) consumer health products and animal health pharmaceuticals in the United States and internationally.

It operates in two segments, Prescription Pharmaceuticals and Consumer Health.

The Prescription Pharmaceuticals segment markets generic and branded ophthalmics, injectables, oral liquids, otics, topicals, inhalants, and nasal sprays. This segment's generic products include Atropine Sulfate Ophthalmic Solution; Clobetasol Propionate Ointment; Dehydrated Alcohol Injection; Ephedrine Sulfate Injection; Hydralazine Hydrochloride Injection; Lidocaine Ointment; Methylene Blue Injection; Myorisan Soft Gelatin Capsules; Nembutal Sodium Solution; and Progesterone Capsules.

The Consumer Health segment markets branded and private label animal health products, as well as OTC products for the treatment of dry eye under the TheraTears brand name. This segment also markets other OTC consumer health products, including Mag-Ox, a magnesium supplement, as well as the Diabetic Tussin line of cough and cold products.

Shares have formed a bullish "cup and handle" and are trading above the stock's 50-day moving average. Note that the firm received approval from the U.S. Food and Drug Administration (FDA) for its Abbreviated New Drug Application (ANDA) for Mycophenolate Mofetil for Injection, USP, 500 mg/vial. According to IMS Health, sales of Mycophenolate Mofetil for Injection were approximately $43 million for the twelve months ended December 31, 2016. Higher share prices are expected for this stock.

52-Weeks Trading Range:  $17.57 - $35.40

Entry Point: $22.98

Stop Loss: $21.85

Target Price: $ 25.28

Updates

4/7/2017 9:34:40 AM

AKRX closed at $26.43

Position closed on 4/7/2017 at price of $26.43 with a 15.01% gain in 35 days.

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