Pfizer to acquire King Pharmaceuticals

Pfizer plans to acquire King Pharmaceuticals for $3.6 billion in cash, expanding its current portfolio of treatments for pain relief and pain management. Under the terms of the deal, Pfizer will pay $14.25 a share, which represents approximately 40% over King’s closing share price on Oct. 11, the company announced in a conference call.

The transaction, which is subject to U.S. regulatory approval and expected to close in the fourth quarter of 2010 or the first quarter of 2011, will expand Pfizer’s business, providing immediate diversified revenues from King’s product portfolio, which includes new formulations of pain treatments designed to discourage common methods of misuse and abuse; the Meridian auto-injector business for emergency drug delivery, which develops and manufactures the EpiPen; and an animal-health business that offers a variety of feed-additive products for a wide range of species, the company said.

“We are highly impressed by Kings’ innovative products and technology in the pain-relief disease area, as well as by its success in advancing promising compounds in its pipeline,” said Pfizer CEO Jeffrey Kindler in a statement. “The combination of our respective portfolios in this area of unmet medical need is highly complementary and will allow us to offer a fuller spectrum of treatments for patients across the globe who are in need of pain relief and management.”

King’s pain-treatment portfolio includes Avinza (morphine sulfate extended-release capsules), a once-daily treatment of moderate-to-severe chronic pain in adults needing around-the-clock pain relief; the Flector Patch (diclofenac epolamine topical patch) 1.3%, a prescription patch containing a nonsteroidal anti-inflammatory drug for treatment of acute pain due to minor strains, sprains, and bruises; and Embeda (morphine sulfate and naltrexone hydrochloride) extended-release capsules, an extended-release oral formulation for the management of moderate-to-severe pain when a continuous, around-the-clock opioid analgesic is needed. Embeda is a long-acting opioid with features designed to lower the risk of abuse and misuse, according to a statement issued by Pfizer and King Pharmaceuticals.

“We see the pain market growing significantly in the coming years,” said Olivier Brandicourt, president and general manager in Pfizer's primary care business unit. “Pfizer already is the largest company with the largest market share in pain with Lyrica and Celebrex. So we see a complementary portfolio offering other solutions for our customers. We are excited by Embeda and Avinza. And we are going to put the Flector Patch in our primary care division with Lyrica and Celebrex. We see growing that pipeline and that portfolio significantly in the coming years.”

In association with Pain Therapeutics, King is also developing Remoxy, a tamper-resistant, long-acting form of oxycodone, which is expected to compete with a new form of OxyContin that recently received FDA approval.