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 stock market finished an upbeat week on a mixed note. The S&P 500 shed less than a point, ending the week higher by 1.3%, while the Dow Jones Industrial Average (+0.1%) cemented a 1.7% advance for the week. High-beta names underperformed, which weighed on the Nasdaq Composite (-0.3%) and the Russell 2000 (-1.3%).
Equity indices displayed strength in the early going with the S&P 500 tagging the 2,019 level during the opening 30 minutes of the action. However, ... More
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