October 14, 2010

Pfizer buys King Pharmaceuticals for US$3.6 billion

Pfizer has purchased King Pharmaceuticals for US$3.6 billion, in a move to further expand its business profile and increase revenues by King's portfolio which includes wholly-owned animal health subsidiary, Alpharma, LLC.

Pfizer anticipates the transaction to yield initial cost savings from operating expenses of at least US$200 million, which are expected to be fully realised by the end of 2013. The transaction is not expected to impact Pfizer's 2010 financial guidance. Furthermore, the tender offer is subject to regulatory approval in the US and other jurisdictions.

Pfizer added that King's key businesses are not only complementary to Pfizer's businesses, but are also strategically aligned with Pfizer's Primary Care, Established Products and Animal Health business units, enabling a seamless combination that will maximise King's assets with Pfizer's global organisation's scale and resources.