Akorn, Inc. has signed a definitive commercial manufacturing supply agreement with Advanced Vision Research, Inc. (AVR) for the product, TheraTears lubricant eye drops. The two companies had previously signed a term sheet for the manufacture of TheraTears on June 6, 2006. TheraTears is an over-the-counter ophthalmic solution for the treatment of dry eyes.

Under the agreement, Akorn will manufacture and supply the product for seven years. TheraTears will be manufactured in Akorn’s Decatur, IL facility. Akorn and AVR anticipate discussions regarding additional new contract development and manufacturing opportunities in AVR’s active product pipeline.

Arthur S. Przybyl, Akorn’s president and chief executive officer stated, “Akorn is committed to expanding its contract development and manufacturing services business. I want to thank AVR for choosing Akorn to manufacture TheraTears. We expect to begin supplying TheraTears to AVR in the fourth quarter of this year.”

AVR president Jeffrey P. Gilbard, M.D. stated, “We are pleased to be moving forward with the manufacture of TheraTears at Akorn’s Decatur facility. The responsiveness of the Akorn team is proving very helpful to us given the demand for our products.”