Pfizer to buy King Pharmaceuticals

The drug giant will expand its offerings by buying the pain-treatment company for $3.6 billion.

By TheStreet Staff Oct 12, 2010 8:47AM

By Adam Feuerstein, TheStreet

Pfizer (PFE) has agreed to buy King Pharmaceuticals (KG) for $3.6 billion to bolster its presence in the pain-relief market, Pfizer said Tuesday.

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.

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Pfizer shares were down 5 cents to $17.33 in premarket trading.

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