Tags: US | Pfizer | King | Pharmaceuticals

Pfizer Will Buy King Pharmaceuticals for $3.6 Billion

Tuesday, 12 Oct 2010 08:35 AM

Pfizer Inc., the world's largest pharmaceutical company by revenue, said Tuesday it will buy pain drug maker King Pharmaceuticals Inc. for $3.6 billion in cash.

Pfizer is paying $14.25 per share for King. That's a premium of 40 percent to the stock's Monday closing price of $10.15. Pfizer gains products including the pain drug Avinza, and Embeda, an extended-release pain treatment that is designed to be abuse-resistant.

King, of Bristol, Tenn., has struggled in recent years as patents on several of its key drugs have expired or been thrown out.

The boards of both companies approved the deal. Pfizer said the purchase will add about 2 cents per share to its profit in 2011 and 2012, and 3 to 4 cents per share in each of the next three years.

In premarket trading, King shares soared to $14.12, up 39 percent from Monday's close. Pfizer shares dipped 8 cents to $17.30.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 
1Like our page
2Share
Companies
Pfizer Inc., the world's largest pharmaceutical company by revenue, said Tuesday it will buy pain drug maker King Pharmaceuticals Inc. for $3.6 billion in cash.Pfizer is paying $14.25 per share for King. That's a premium of 40 percent to the stock's Monday closing price of...
US,Pfizer,King,Pharmaceuticals
151
2010-35-12
Tuesday, 12 Oct 2010 08:35 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved