The Medical Technology Blog

Pfizer grabs a slice of growing pain relief market

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The pain relief market is rapidly growing, with US physicians writing around 320 million prescriptions to treat pain in 2009. In a bid to get in on the action, Pfizer has moved swiftly to snap up King Pharmaceuticals, a diversified specialty pharmaceutical discovery and clinical development company, headquartered in Bristol, TN. King’s leadership in new formulations of pain treatments, designed to discourage methods of misuse and abuse, will provide Pfizer with a series of new drug-delivery platforms.

Pfizer expects the purchase of King to expand its business profile, providing immediate revenues from King’s portfolio, which includes a prescription pharma business focused on delivering new pain treatments designed to discourage misuse and abuse. Pfizer will also get its hands on King’s Meridian auto-injector business for emergency drug-delivery, which develops and manufactures the EpiPen and is a long-term critical supplier to the US Department of Defense; as well as an animal health business that offers feed-additives for a wide range of species. Pfizer believes that not only are these three business complimentary to its own businesses, they are also a perfect fit with its own Primary Care, Established Products and Animal Health business units.

Under the terms of the acquisition, Pfizer will acquire King for US$3.6 billion in cash, or US$14.25 per share, a hefty premium of approximately 40 per cent to King’s closing price as of 11th October, the day before the US giant made its move. The transaction was approved by the Boards of both companies and is expected to be enhancing to Pfizer’s adjusted diluted EPS by approximately US$0.02 annually in 2011 and 2012, and approximately US$0.03 US$0.04 annually from 2013 to 2015.

Pfizer targeted King because, it said, it was “highly impressed” by the company’s products and technology in the pain relief disease area, as well as by its success in advancing promising compounds in its pipeline. Pfizer also believes that the combination of the companies’ respective portfolios in the area of unment clinical need is highly complementary, which will allow its business to offer a fuller spectrum of pain relief and management.

In the next issue of The Medical Technology Blog,  SurModics renews its business focus but employees set to pay the price…

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