Shares of leading drugmaker Akorn, Inc. (AKRX) plunged 14 percent in pre-market trading following the report of overstatement of revenue and downgrade. The company said it has discovered it overstated fiscal 2014 net revenue and pretax income by $20 to $35 million and that it will make additional accounting restatements for the final three quarters of FY/14. Akorn also said the allocation of the impact of the errors among the affected quarterly periods has not been determined. It affirmed however, 2015 adjusted EPS guidance.
Following the news, analysts at Piper Jaffray downgraded the name from an ‘Overweight’ rating to a ‘Neutral’ rating.
AKRX shares recently lost $8.38 to $46.86. In the past 52 weeks, shares of Lake Forest, Illinois-based company have traded between a low of $23.49 and a high of $57.10. Shares are up 131% year-over-year and 52.60% year-to-date.