8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                              -------------------

                                    FORM 8-K
                                 CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

         DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JULY 3, 2003

                              -------------------

                                   AKORN, INC.
             (Exact name of registrant as specified in its charter)



LOUISIANA                        0-13976                    72-0717400
(State or other jurisdiction     (Commission                (IRS Employer
of incorporation)                File Number)               Identification No.)



               2500 MILLBROOK DRIVE BUFFALO GROVE, ILLINOIS 60089
                    (Address of principal executive offices)

       Registrant's telephone number, including area code: (847) 279-6100

                                 NOT APPLICABLE
          (Former name or former address, if changed since last report)

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ITEM 5. OTHER EVENTS AND REQUIRED FD DISCLOSURE.

Akorn, Inc. ("Akorn") is filing herewith as Exhibit 99.1 its press release,
dated July 3, 2003, announcing the intention of Akorn's senior lenders, subject
to a number of conditions, to extend the expiration date of the Forbearance
Agreement relating to Akorn's senior debt from June 30, 2003 until July 31, 2003
and to make up to an additional $1,000,000 available to Akorn under its current
line of credit.



ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

(c) Exhibits. The following exhibit is filed with this report:

Exhibit No.      Description of Exhibit
99.1             Press Release issued by Akorn, dated July 3, 2003.


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                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                              AKORN, INC

                                              BY:     /s/ ARTHUR S. PRYZBYL
                                                      ---------------------

                                                      Arthur S. Pryzbyl
                                                      Chief Executive Officer

Date: July 7, 2003




EXHIBIT INDEX


EXHIBIT NO.     DESCRIPTION OF EXHIBIT
99.1            Press Release issued by Akorn, dated July 3, 2003.

EX-99.1

At the Company:                                  At In-Site Communications, Inc.
Ben J. Pothast                                   Lisa M. Wilson
Chief Financial Officer                          Investor Relations
(847) 279-6100                                   (212) 759-3929

FOR IMMEDIATE RELEASE

                             AKORN UPDATES STATUS OF
                              FORBEARANCE AGREEMENT

BUFFALO GROVE, IL, JULY 3, 2003 -- AKORN, INC. (AKRN) today announced that its
senior lenders have indicated their intention to extend the expiration date of
the Forbearance Agreement relating to Akorn's senior debt from June 30, 2003
until July 31, 2003 and to make up to an additional $1,000,000 available to
Akorn under its current line of credit. The formal extension of the Forbearance
Agreement and increase of the line of credit are subject to a number of
conditions, including the completion of definitive documentation for the
extension and increase and the absence of any additional defaults by Akorn under
its senior debt agreements.

The Forbearance Agreement was originally executed in September 2002 following a
default by Akorn on principal and interest payments due on August 31, 2002. The
Forbearance Agreement, as amended and extended, provides that the senior lenders
will forbear from exercising their remedies as a result of existing defaults by
Akorn until the earlier of the expiration date and the occurrence of any
additional defaults by Akorn under its senior debt agreements. The Forbearance
Agreement also provides for a revolving line of credit that currently allows
Akorn to borrow up to $1,750,000. The proposed amendments would extend the
expiration date until July 31, 2003 and increase the maximum amount available
under the line of credit from $1,750,000 to $2,750,000.

Akorn's sales levels were lower than expected in April, May and June, which
resulted in reduced collections from receivables in the latter part of the
second quarter and is expected to continue to negatively impact cash flow in
July and August. Even if the increased availability under the line of credit is
finalized, there can be no assurance that the line of credit, together with cash
generated from operations, will be sufficient to meet the cash requirements for
operating Akorn's business.


ABOUT AKORN, INC.
Akorn, Inc. manufactures and markets sterile specialty pharmaceuticals, and
markets and distributes an extensive line of pharmaceuticals and ophthalmic
surgical supplies and related products. Additional information is available on
the Company's website at www.akorn.com.

Any statements made by Akorn, Inc. ("we", "us", "our", or the "Company") in this
press release that are forward looking are made pursuant to the safe harbor
provisions of the private Securities Litigation Reform Act of 1995. The Company
cautions readers that important factors may affect the Company's actual results
and could cause such results to differ materially from forward-looking
statements made by or on behalf of the Company. Such factors include, but are
not limited to, risks and uncertainties relating to (i) difficulties or delays
in restructuring or refinancing the Company's senior bank debt, (ii) the ability
to generate cash from operations






sufficient to meet the Company's working capital requirements, (iii) the
necessity of complying with various regulatory procedures in the manufacture of
drug products, (iv) the Company's ability to acquire, develop, finance, test,
produce and market new products, including the availability of materials to
produce products, (v) the resolution of the FDA compliance issues at the
Company's Decatur, Illinois manufacturing facility and the outcome of other
legal proceedings involving the Company, (vi) patent protection for the
Company's intellectual property or trade secrets, and (vii) other risks detailed
from time to time in filings the Company makes with the Securities and Exchange
Commission including, but not limited to, those risks referenced under the
caption "Factors That May Affect Future Results" in Item 7 of the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2002.