<p>Both companies have entered into a definitive pact for the transaction, which has been approved by the firms' boards.In a statement, Pfizer said it would buyout King Pharmaceuticals for USD 3.6 billion in cash, translating into a share price of USD 14.25 apiece, which represents a 40 per cent premium over the company's cosing price on October 11.<br /><br />Subject to various regulatory approvals, the transaction is expected to close in the fourth quarter of 2010 or the first quarter of 2011.King Pharmaceuticals is a diversified specialty pharmaceutical discovery and clinical development company.<br /><br />"This strategic combination will allow Pfizer to leverage its existing commercial capabilities and expertise to create one of the leading broad portfolios for pain relief and management in the bio-pharmaceutical industry...," it said.<br /><br />The acquisition would bring pain treatment drugs such as Avinza, Flector Patch and Embeda into Pfizer's portfolio. Pfizer's current offerings in this segment include Lyrica and Celebrex.<br />King Pharmaceuticals' Meridian auto-injector business for emergency drug delivery is a long-term supplier to the US Department of Defence, while its animal health business offers a variety of feed additive products for various species.<br /><br />Noting that the combination would be "highly complementary", Pfizer Chairman and Chief Executive Jeffrey Kindler said it would help the company offer a fuller spectrum of pain relief and management remedies globally.<br /><br />"The market for pain relief and management treatments is increasing, with physicians in the US writing approximately 320 million prescriptions to treat pain in 2009," the statement noted.</p>
<p>Both companies have entered into a definitive pact for the transaction, which has been approved by the firms' boards.In a statement, Pfizer said it would buyout King Pharmaceuticals for USD 3.6 billion in cash, translating into a share price of USD 14.25 apiece, which represents a 40 per cent premium over the company's cosing price on October 11.<br /><br />Subject to various regulatory approvals, the transaction is expected to close in the fourth quarter of 2010 or the first quarter of 2011.King Pharmaceuticals is a diversified specialty pharmaceutical discovery and clinical development company.<br /><br />"This strategic combination will allow Pfizer to leverage its existing commercial capabilities and expertise to create one of the leading broad portfolios for pain relief and management in the bio-pharmaceutical industry...," it said.<br /><br />The acquisition would bring pain treatment drugs such as Avinza, Flector Patch and Embeda into Pfizer's portfolio. Pfizer's current offerings in this segment include Lyrica and Celebrex.<br />King Pharmaceuticals' Meridian auto-injector business for emergency drug delivery is a long-term supplier to the US Department of Defence, while its animal health business offers a variety of feed additive products for various species.<br /><br />Noting that the combination would be "highly complementary", Pfizer Chairman and Chief Executive Jeffrey Kindler said it would help the company offer a fuller spectrum of pain relief and management remedies globally.<br /><br />"The market for pain relief and management treatments is increasing, with physicians in the US writing approximately 320 million prescriptions to treat pain in 2009," the statement noted.</p>