Akorn details policy to prevent use of its drugs in state executions

(Reuters) - Akorn Inc announced a policy to prevent the use of its drugs in state executions in response to a call by shareholder New York State Common Retirement Fund, the third-largest public pension fund in the United States. The company said it would restrict the sale of components of lethal injection to a select group of wholesalers who agree to keep these products out of correctional institutions. Akorn said it adopted a policy earlier this year to not accept direct orders from prison systems. Shares of Akorn, which makes versions of sedative midazolam and painkiller hydromorphone hydrochloride, rose as much as 6 percent on Wednesday. A combination of the two drugs has been used in executions, including the botched executions in states such as Ohio and Arizona. Reports of lethal injections going awry have increased scrutiny over the sale of drugs for potential use in executions. New York State Common Retirement Fund, which held about 0.3 percent in Akorn as of Dec. 31, had urged the company to detail its stance on supply of drugs for state executions at its annual meeting in spring. New York State Comptroller Thomas DiNapoli has also asked Mylan Inc for its stance on the issue. Akorn's shares closed 3.8 percent higher at $51.19 on Wednesday on the Nasdaq. (Reporting by Natalie Grover in Bengaluru; Editing by Kirti Pandey)