Pfizer finalised a $3.6 billion deal and added King Pharmaceuticals Inc. (KG) as their new partners. King Pharmaceuticals are specialists of pain-reliefs and this news came in just before the opening session of Tuesday.
According to the deal KG will get $14.25 in cash for each share from Pfizer. This is a 40% premium to the figures closing on Monday. The company is expecting an increase of 2cents per share in the 2011 and 2012 earnings while an increment of 3 to 4 cents per share per year from 2013 to 2015 , all due to the acquisition. As a result of thi deal the shares of KG have achieved new heights in the last 3 years at above $14 per share.
The deal also helped to rocket the shares of another painkiller manufacturer named Pain Therapeutics which has combined with King to develop Remoxy, the lead drug product of Pain which is currently undergoing trials.
The two companies have also agreed to a license for a “strong painkiller” for Remoxy. This new product is based on an unique formula which delivers the new drug as a capsule and prevents drug addiction and concentrates more on the painkiller qualities.
The deal has made the investors and traders ecstatic with the concept of worldwide Pfizer sales and Remoxy being pushed to super hit blockbuster status. King is supposed to be submitting an application for Remoxy during the last quarter with Food and Drug Administration.
As a result of this development the share prices of Pain had an increase of about 20% to $7.43.
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