- Push-out Score determined
- After almost nine years in the position
- Praise and thanks for Rai
- Search for a successor
(exechange) — Lake Forest, Illinois, December 7, 2018 — Raj Rai, chief executive of Akorn, leaves. As announced by Akorn Inc. in a news release and in a regulatory filing published on Friday, December 7, 2018, Rajat (Raj) Rai leaves his post as chief executive officer at the specialty generic pharmaceutical company after almost nine years in the role, effective upon the hiring of a new Chief Executive Officer.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 9 years, according to data compiled by exechange.
Akorn will undertake a search for a successor.
“Move forward and rebuild shareholder value”
A reason for Raj Rai’s departure from the CEO post was not explicitly given. Akorn said: “Akorn, Inc. …, today said it will move forward and rebuild shareholder value as an independent company following the disappointing decision from the Supreme Court of the State of Delaware upholding the lower court’s decision to allow Fresenius Kabi AG to terminate the April 2017 merger agreement.”
Precise information about Raj Rai’s future plans was not immediately available.
Akorn said: “Current CEO Raj Rai has decided to retire and will assist the board to ensure a smooth transition and remain in his role until the hiring date of the new chief executive.”
Share price decline
The change follows a decline in Akorn, Inc.’s share price of 82 percent since February 2018.
Chaired by Alan Weinstein
Akorn, Inc. is chaired by Alan Weinstein.
Weinstein became a director in July 2009 and was appointed Chair of the Board in 2017.
In the position of CEO since 2010
Rajat Rai has been the Chief Executive Officer of Akorn, Inc. since May 21, 2010.
Rai was appointed Interim Chief Executive Officer in June 2009, and appointed Chief Executive Officer in May 2010.
He had been appointed Strategic Consultant to the Special Committee of the Board in February 2009, following the departure of the Company’s former President and Chief Executive Officer.
Prior to joining Akorn, Rai was the President and CEO of Option Care, Inc., a leading provider of home infusion pharmacy and specialty pharmacy services, which was acquired by Walgreen Co. (now known as Walgreens Boots Alliance, Inc.) in August 2007.
Rai previously served on the board of directors of SeQual Technologies Inc.