Although one can very often accuse management of companies of clinging on too long, in the case of the CEO Akorn, Raj Rai, it would have taken someone with the constitution of an ox to remain in place after the white knuckle ride his company and its share price endured last year. The failed and abandoned mooted $4bn takeover of Akorn by Fresnius was a great idea, especially given the consolidation in the pharma sector. But off the back of due diligence issues the deal collapsed. This leaves Akorn in an intriguing position. The market capitalisation of the group is now less than an eight of the old offer, something which rather gives the impression of this being a bargain, DD or not. What is interesting is that there has been persistent support for the stock in the $3.5 zone, something which ties in with the idea of some in the market that there may be a buyer for Akorn looking to grab the company on the cheap. Technically speaking, the barrier to break will be the 50 day moving average at $3.91, just below a line of resistance from September. Even if present rumours do not materialise, $4 plus could be a sign that the stock is ready to shake off the horrors of last year. A new CEO may also be more receptive to doing a deal with a third party than their predecessor.
