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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