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Specialty drugmaker Akorn ( AKRX ) was up in early trading Tuesday after its belated Q1 earning report met Wall Street’s expectations and a major investor tripled its stake in the firm. Late Monday, Akorn reported its first-quarter results just a week after it announcing Q4 and 2015 results , along with restated 2014 earnings, after a year-long repair of its accounting system. It also affirmed the 2016 guidance it issued last month, calling for at least 80% earnings growth over the previous year, with revenue up 8% to 10%. “Akorn’s guidance continues to exclude new approvals, and to us the growth outlook here is going to be about two things: (i) converting the current pipeline of 86 ANDAs (generic-drug applications) in an environment where we are seeing accelerating FDA approval activity, and (ii) pursuing a strategy of targeting bolt-on deal opportunities,” RBC Capital Markets analyst Randall Stanicky wrote in a research note. Akorn said that adjusted net income rose 20% over the year-earlier quarter to 54 cents a share, in line with analysts’ consensus. Revenue rose 18% to $268 million, also in line. The financial uncertainty cut Akorn’s stock price by two-thirds between its April 2015 high and its March 18 low, but since then it’s climbed nearly 70%. In the stock market today , Akorn stock rose 7.6% in heavy volume, to 29.91, and hit a four-month high. Bloomberg also reported that investment management firm Paulson & Co. has become Akorn’s second-largest shareholder , with $219 million in holdings. The report said Paulson also bought into Endo International ( ENDP ), another specialty pharma that fell out of favor with Wall Street after issuing guidance this month that disastrously missed estimates, with a Paulson spokeswoman saying many specialty pharma stocks have been oversold. Scalper1 News
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