Expands Presence in the $1.2 billion Over-the-Counter Eye Care Market

LAKE FOREST, IL— May 3, 2011 — Akorn, Inc. (NASDAQ: AKRX), a niche generic pharmaceutical company, announced today that it has entered into an agreement to acquire Woburn, MA, based Advanced Vision Research, Inc. (“AVR”), a premier over-the-counter (“OTC”) ophthalmic company that develops and markets eye care products under the TheraTears® and MacuTrition ® brand names, for $26 million in cash on hand. These products are used for dry eyes, eyelid hygiene, contact lens comfort and eye nutrition.

AVR was founded in 1995 by the late Jeffery P. Gilbard, M.D. with its lead products developed in the clinics and laboratories of Harvard University’s Schepens Eye Research Institute. In 2010, AVR generated sales of $20 million, which consisted of domestic sales through major retail chains and sales in 20 countries across five continents.

Akorn also announced plans to launch a new Consumer Health Division to enter the $1.2 billion OTC eye care market,pending the acquisition of AVR. The company plans to further expand by licensing new products and developing private labeled eye care products for major retailers. The company named Bruce Kutinsky, Pharm. D., as its President of the newly formed Consumer Health Division. Mr. Kutinsky joined Akorn as its Senior Vice President of Corporate Strategy in 2010. Prior to joining Akorn, Mr. Kutinsky served as the Vice President of Strategic Solutions at Walgreens. Mr. Kutinsky held various senior management positions at Option Care, Inc., which was acquired by Walgreens in 2007. Mr. Kutinsky started his career as a retail pharmacist and has a doctor of pharmacy degree from the University of Michigan, Ann Arbor, MI.

Raj Rai, Chief Executive Officer commented, “AVR is a great strategic platform to expand into the OTC eye care market. We have had a relationship with AVR for several years as a primary contract manufacturer. With the acquisition, we can add value in future growth as we have an existing sales infrastructure that markets products to ophthalmologists, optometrists, and retailers nationwide complementing AVR’s sales initiatives.”

The Company expects the AVR acquisition to be neutral to its 2011 earnings per share after the impact of transaction related expenses and the impact of purchase price allocation of $.01 to $.02 in earnings per share. In 2012, AVR is expected to be accretive by $.03 to $.04 earnings per share.

MTS Health Partners, L.P. served as the advisor to AVR in the transaction.

About Akorn, Inc.

Akorn, Inc. is a niche pharmaceutical company engaged in the development, manufacture and marketing of multisource and branded pharmaceuticals. Akorn has manufacturing facilities located in Decatur, Illinois and Somerset, New Jersey where the Company manufactures ophthalmic and injectable pharmaceuticals. Additional information is available on the Company’s website at www.akorn.com.
About Advanced Vision Research, Inc.

Advanced Vision Research, Inc, based in Woburn, MA is a premier niche OTC ophthalmic company engaged in the development, manufacture and marketing of branded OTC products under the TheraTears® and MacuTrition® brand names. These products are used for dry eye, eyelid hygiene, contact lens comfort and eye nutrition. AVR was founded in 1995 by the late Jeffery P. Gilbard, M.D. with its lead products developed in the clinics and laboratories of Harvard University’s Schepens Eye Research Institute. In 2010, AVR generated sales of $20 million, which consisted of domestic sales through major retail chains and sales in 20 countries across five continents. Additional information is available on the Company’s website at www.theratears.com.