Pfizer Announces USD3.6 Billion Acquisition of King Pharmaceuticals.
Pfizer said the transaction will further expand it's business profile, providing immediate, incremental diversified revenues generated by King's portfolio which includes wholly owned animal health subsidiary, Alpharma, LLC.
Jeffrey Kindler, Pfizer's chairman and CEO said: "We are highly impressed by King's innovative products and technology in the pain relief disease area, as well as by its success in advancing promising compounds in its pipeline. The combination of our respective portfolios in this area of unmet medical need is highly complementary and will allow us to offer a fuller spectrum of treatments for patients across the globe who are in need of pain relief and management."
Mr Kindler added: "In addition, the revenue generated by King's portfolio will further diversify Pfizer's business, while at the same time contributing to steady earnings growth and shareholder value."
Pfizer went on to say that King's key businesses are not only complementary to Pfizer's businesses, but are also strategically aligned with Pfizer's Primary Care, Established Products and Animal Health business units, enabling a seamless combination that will maximize King's assets with Pfizer's global organization's scale and resources.
"By bringing together King's capabilities in new formulations of pain treatments, designed to discourage common methods of misuse and abuse, with Pfizer's commercial, medical and regulatory expertise, global strength in patient services and reimbursement, and global scale and resources, we believe Pfizer can build on our foundation and take our business to the next level," said Brian Markison, chairman and chief executive officer of King.
In addition, Pfizer anticipates the transaction to yield initial cost savings from operating expenses of at least $200 million, which are expected to be fully realized by the end of 2013. The transaction is not expected to impact Pfizer's 2010 financial guidance. Furthermore, the tender offer is subject to regulatory approval in the U.S. and other jurisdictions.
The company said: "At Pfizer, we apply science and our global resources to improve health and well-being at every stage of life. We strive to set the standard for quality, safety and value in the discovery, development and manufacturing of medicines for people and animals. Our diversified global health care portfolio includes human and animal biologic and small molecule medicines and vaccines, as well as nutritional products and many of the world's best-known consumer products.
Headquartered in Bristol, Tennessee, King is a vertically integrated branded pharmaceutical company. King, an S&P 500 Index company, seeks to capitalize on opportunities in the pharmaceutical industry through the development, including through in-licensing arrangements and acquisitions, of novel branded prescription pharmaceutical products and technologies that complement the company's focus in specialty-driven markets, particularly neuroscience and hospital.
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|Publication:||Feedinfo News Service|
|Date:||Oct 12, 2010|
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