Pfizer to buy King Pharmaceuticals
The drug giant will expand its offerings by buying the pain-treatment company for $3.6 billion.
By Adam Feuerstein, TheStreet
The deal values King at $14.25 a share, or a 40% premium over King's closing price of $10.15 a share Monday. Pfizer said the acquisition will have no material impact on 2010 earnings but will add approximately 2 cents a share to estimated 2011 and 2012 earnings.
King specializes in pain drugs, including Embeda, an opioid that's resistant to abuse and misuse. King earned $1.10 a share in 2009 on total revenue of $1.78 billion and is expected to earn 68 cents a share on $1.48 billion this year, according to Thomson Reuters.
Pfizer said the King acquisition will allow it to expand its current pain offerings, which include Lyrica and Celebrex.
Pfizer shares were down 5 cents to $17.33 in premarket trading.
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[BRIEFING.COM] The S&P 500 has slipped about two points off its high for the day (a record high we might add) and everyone is stirring to figure out what the heck happened, especially because it dropped a quick two points right after the top of the hour.
There might be a news catalyst out there. Some have speculated that it may be tied to the results of the 10-yr TIPS auction, but since the Treasury market didn't move in response to the auction, that speculation seems a little ... More
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