Akorn, Inc. and Cipla, Ltd. Announce the Signing of an Exclusive Drug Manufacturing and Supply Agreement For an Oral Anti-Infective ANDA Drug Product

Tuesday, March 7, 2006

BUFFALO GROVE, Ill.--(BUSINESS WIRE)--March 7, 2006--Akorn, Inc. (AMEX:AKN - News) and Cipla, Ltd., a leading Indian pharmaceutical company located in Mumbai, India, today announced the signing of an exclusive drug manufacturing and supply agreement for an oral anti-infective ANDA drug product.

Under the terms of the ten-year agreement, Cipla will be responsible for the manufacturing and supply of the drug using Akorn's formulation, and Akorn will be responsible for the ANDA regulatory submission and clinical development, and for the purchase of specialized manufacturing equipment. Akorn will pay Cipla milestone fees for Cipla's assistance with ANDA development and submission. Pursuant to the agreement, Akorn will purchase the product from Cipla and Cipla will supply the product to Akorn on an exclusive basis in the United States. Akorn will own the ANDA in the United States. The total market size for the oral ANDA anti-infective drug product is approximately $100 million.

Arthur S. Przybyl, Akorn's President and Chief Executive Officer stated, "Together with Cipla, we are strongly committed to expediting the clinical development activities necessary to introduce this product to the market. The commercialization of this ANDA drug product is a top priority".

About Akorn, Inc.

Akorn, Inc. manufactures and markets sterile specialty pharmaceuticals. Akorn has manufacturing facilities located in Decatur, Illinois and Somerset, New Jersey and markets and distributes an extensive line of hospital and ophthalmic pharmaceuticals. Additional information is available at the Company's website at www.akorn.com.

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Contact:
Akorn, Inc.
Arthur S. Przybyl, 847-279-6100