King Pharmaceuticals Inc.announced on Tuesday October 12,2010 that it has been purchased by Pfizer.
Pfizer offered 3.6 billion dollars for King Pharmaceuticals and seeing the transaction was done in cash, it will pay $14.25 a share which represents a 40% premium on the closing prices of the buyer.
King Pharmaceuticals, which specializes in pain relievers such Flector pain patch, abuse-resistant pain treatment Embeda and made $1.78 billion in revenue last year will complete the New York-based company’s already impressive portfolio which has Lyrica and Celebrex.
The world’s largest drugmaker had announced in early August that it was willing to spend “several billions” of dollars for external growth and by the looks of things they were not joking.
Pfizer, which had already bought Wyeth for 68 billion dollars, last year is still searching for what will replace the lost its cholesterol-lowering drug Lipitor- that brought in $ 11 billion in 2009 (which represents nearly a quarter of the annual revenue of the global laboratory).
According to officials today’s impressive transaction is expected to have a positive effect of $ 0.02 per share on adjusted earnings from Pfizer in 2011.
If approved by various regulatory authorities, the transaction will be finalized in the fourth quarter 2010 or first of 2011.