King Pharmaceuticals

King nabs Alpharma for $1.6B

Calisha Myers — Mon, 24 Nov 2008 10:32:19 -0500

King Pharmaceuticals, which has been courting Alpharma for months now, has finally gotten its wish. Alpharma rejected King's first offer of $1.4 billion back in September--although it was a 49 percent premium over Alpharma's share price on August 4. And again slammed King's tender offer of $37 a share last month, calling the offer "financially inadequate." Although Alpharma claimed it had other companies interested in a buyout, King pushed foward with the hostile bid. But today the companies announced a $1.6 billion merger agreement under which Alpharma shareholders will sell to King for it's latest offer of $37 a share. The tender offer that was to expire on Friday has now been extended until December 19. The sell is expected to be completed by the end of the year.

So why the change of heart? Well, King had threatened a proxy battle if Alpharma continued to reject its offers. But here's how Alpharma puts it: "The transformation of Alpharma over the past two years has created tremendous shareholder value, and we have consistently said that we will act in the best interest of shareholders," commented Dean Mitchell, Alpharma's President and CEO. "Therefore, after careful evaluation, our Board determined that a combination with King is in the best interest of our shareholders and provides them immediate access to this value. We believe the combined company has a compelling strategic logic and will create a strong company for both shareholders and employees. We look forward to working with King's team to integrate our companies."

- check out the joint release

King extends offer in hostile bid for Alpharma

John Carroll — Mon, 13 Oct 2008 11:51:56 -0400

King Pharmaceuticals isn't backing off its hostile bid to acquire Alpharma. Today King announced that it is extending its tender offer for Class A Alpharma shares to November 21. The $37 per share offer--a 54 percent premium over Alpharma's close the day before King made its original bid--had been scheduled to expire last Friday.

King says it has so far gained 18.8 million shares--about 45 percent of the outstanding shares. Its bid values Alpharma at $1.6 billion. Alpharma, meanwhile, has said that the offer is inadequate. But last week the two companies inked a confidentiality agreement that gives King the right to look over its books.

- check out the King release
- read the report from the New York Times

ALSO: Acura Pharmaceuticals and King Pharmaceuticals announced positive top-line data from a study assessing the abuse liability of Acurox Tablets. Acura release

King responds to Alpharma's rejection

Calisha Myers — Fri, 26 Sep 2008 15:19:34 -0400

After issuing its second bid, King warned Alpharma that it wouldn't take "no" for an answer. But earlier today Alpharma issued a statement rejecting King's bid of $37 a share, saying it had other parties in the wings interested in purchasing Alpharma. King responded with its own statement:

"Our $37 per share cash tender offer, which is not conditioned on financing, is the only outstanding offer for Alpharma and would provide its shareholders with a 67 percent premium over Alpharma's closing price on August 4, 2008, the date of our initial written offer," King said. "Given the uncertainty in the financial markets, we believe it is in the best interests of Alpharma stockholders to consummate our transaction as quickly as possible. Our management team and financial and legal advisors are available to meet with Alpharma immediately."

- read King's release

Alpharma rejects King's bid--again

Maureen Martino — Fri, 26 Sep 2008 09:55:31 -0400

King Pharmaceuticals can join the ranks of scorned suitors. Alpharma announced today that it has rejected the company's increased bid of $1.6 billion, or $37 per share, saying that it was "financially inadequate and not in the best interests of shareholders." King's originally bid $1.4 billion but Alpharma immediately declined the offer.

Once again, Alpharma urged shareholders not to act while the board explores other options. Those options include the possible sale of the company to King or to another party for a price in excess of $37.00 per share. Taking a page out of Carl Icahn's playbook, CEO Dean Mitchell said that other (unnamed) companies are considering bidding for the company, and that one potential suitor has already made a offer over $37 per share. "[W]e have received expressions of interest from multiple parties who contacted us following King's public disclosure of its proposal or who our financial advisors solicited at our request," Mitchell said in a statement. "We have entered into confidentiality agreements with a number of these parties who have now begun their due diligence review, and have already received a written preliminary indication of interest for a business combination from a party that includes a per share price in excess of the King offer of $37 per share."

When King made it's second bid, the company warned that any further resistance from Alpharma would be met with a proxy battle for control of the company's board. Looks like we have yet another buyout fight to watch.

- see Alpharma's release

Alpharma considers King's offer

Maureen Martino — Fri, 12 Sep 2008 08:45:23 -0400

Following King Pharmaceuticals' beefed-up bid, Alpharma's board is urging shareholders not to take any action until they have decided whether or not to accept. The board will make a recommendation to Alpharma's shareholders within 10 business days following the commencement of the tender offer. "No assurance can be given that the process being undertaken by the Board will result in the announcement or consummation of a sale or other transaction with King Pharmaceuticals or any other party, and no assurance can be given with respect to the price or other value that may be obtained in any such transaction," Alpharma said in a statement. Release

King bumps Alpharma bid, threatens proxy fight

John Carroll — Thu, 11 Sep 2008 11:16:30 -0400

King Pharmaceuticals bumped its bid for Alpharma to $1.6 billion, an increase of 12 percent, and made it clear that it's ready to get hostile if Alpharma continues to play hard to get. King's offer now stands at $37 a share, a 67 percent premium over the August 4 close, just before King made its initial overture. Alpharma rejected that $33-per-share offer as too low.

In a letter, King called the higher bid a "compelling offer." And the pharma company is not taking no for an answer. Any further resistance will be met with a proxy battle for control of Alpharma's board, King warned.

"We have determined it is necessary to take our enhanced offer directly to Alpharma stockholders in order to deliver significant value to them as expeditiously as possible," said King Chairman and Chief Executive Brian A. Markison this morning. "We are committed to completing this transaction and remain willing to work cooperatively with Alpharma."

Investors have been looking for a higher bid all along, pushing the share price past the $33 level since the first bid was disclosed.

- here's King's release on the bid
- check out the report from the Wall Street Journal

Partners in pain target new drug

John Carroll — Wed, 27 Aug 2008 10:28:35 -0400

Pain Therapeutics and King Pharmaceuticals, which are already partnered in a major pain drug program, say they are developing a new abuse-resistant prescription pain medication called PTI-721. Like REMOXY, PTI-721's formulation is designed to resist common methods of prescription drug abuse or misuse. The active pharmaceutical ingredient in PTI-721 remains undisclosed. Release

Alpharma shares skyrocket on King's buyout offer

John Carroll — Fri, 22 Aug 2008 09:05:01 -0400

King Pharmaceuticals will try and join the billion-dollar buyout club with a $1.38 billion cash offer for Alpharma. King is offering $33 a share, a 37 percent premium on Thursday's close and a 49 percent premium over the share price on August 4, when it revealed its offer to Alpharma's board. Alpharma's directors voted to reject the offer, but King won't take no for answer. The company says it is ready to get hostile if necessary to push the acquisition through. And that sent Alpharma's shares through the roof this morning, soaring 46 percent.

Up to now, King Pharmaceuticals and Alpharma were competitors angling to seize the lead in a race to introduce new, abuse-resistant therapies for chronic pain. King and Pain Therapeutics have been pushing Remoxy while Alpharma resubmitted its marketing application for Embeda in June. The Fool noted recently that both programs could be approved by the end of the year, leading to hot competition in the first quarter of 2009.

"We believe this compelling combination would create a strong platform for sustainable long-term growth to better address the changing health care industry and provide meaningful, cost-effective medicines that improve the quality of life for patients," said King Pharmaceuticals Chief Executive Brian A. Markison in a statement.

The buyout offer marks the latest in a string of 10- and 11-figure buyout offers in recent weeks, with Roche angling for all of Genentech and BMS bidding for an elusive ImClone.

--see this release for more

Palatin slashes staff, dumps research program

Wed, 14 May 2008 06:59:58 -0400

Palatin Technologies is cutting about a third of its workforce and dumping one of its lead development programs--an effort to find a better tolerated successor to sildenafil. After studying research results, Palatin has discontinued development of bremelanotide for the treatment of male and female sexual dysfunction, focusing its research on the therapy for hemorrhagic shock and related indications. Researchers will launch a Phase IIa study of PL-3994 this quarter in patients with controlled hypertension. A Phase IIa study of PL-3994 for acute congestive heart follows next year.

Palatin suffered a serious blow last summer over regulatory questions regarding spikes in the blood pressure of volunteers taking the drug. Its partner in the effort, King Pharmaceuticals, bowed out and Palatin launched a strategic review of its operations. The staff cut will bring the company's head count down to 45.

"Palatin has had a strong and productive research effort focused on two challenging and exciting scientific areas: melanocortin and natriuretic peptide receptors," said CEO Carl Spana. "Concentrating our efforts on value drivers and matching our resources to those projects with the highest potential for near-term success is our immediate priority."

- check out the press release
- read the report

ALSO NOTED: Solvay drug 'approvable'; ChemGenex touts trial results: Asuragen raises $18.5M in venture cash; and much more...

Mon, 10 Dec 2007 06:59:50 -0500

> FDA staffers say that Solvay's experimental therapy for atrial fibrillation is approvable--with conditions. Report

> Shares of ChemGenex, a biotech with facilities in the U.S. and Australia, were boosted on the news that its experimental therapy for chronic myeloid leukemia showed promise in a clinical trial. Speaking at ASH, researchers said that omacetaxine triggered a response in 91 percent of the 21 patients taking the drug. The patients were selected after the T3151 mutation made them resistant to existing therapies. Release

> Austin-based Asuragen, a molecular diagnostics company and molecular biology service provider, has raised $18.5 million in Series B financing. Release

> Fundamental Applied Biology has completed a $21 million Series B financing. Release

> ZymoGenetics is touting positive early stage data on its cancer therapy IL-21. The drug may boost the effectiveness of Rituximab in killing cancer cells. Report

> The Jordanian pharma company Arab Pharmaceutical Manufacturing has accepted a $163 million cash offer from Hikma. Report

> Acura Pharmaceuticals has received a $30 million cash payment from King Pharmaceuticals Research and Development. Release

> GE Healthcare and Novavax have agreed to collaborate on the development of a manufacturing process for a pandemic influenza vaccine. Release

> The rise of generic drugs has been bad news for Big Pharma, but not so bad for copycat makers like Mylan. Report

> Third time's the charm? Merck is going to the FDA again, hat in hand, asking for approval to sell the statin drug Mevacor over the counter. Report

> News flash: Experts are using the words "Velcade" and "blockbuster" in the same sentence. Report

And Finally… Scattered in the American Southeast, you'll find pockets of some of the country's highest mortality rates. Release

Remoxy meets Phase III endpoint for pain

Thu, 06 Dec 2007 06:59:55 -0500

Pain Therapeutics and King Pharmaceuticals have announced positive results of a Phase III study of Remoxy for patients with chronic participated pain. Remoxy is an abuse-deterrent version of long-acting oxycodone. Remoxy has the benefits of oxycodone but can be prescribed by doctors who want to minimize the risks of abuse, misuse or diversion. With prescription pain drug use on the rise, preventing abuse is a major concern. Pain Therapeutics expects to file an NDA for Remoxy in the second half of 2008. If approved, Remoxy will be the first oxycodone on the market designed to deter abuse.

- see this release for more

Related Articles:
Pain drug prescriptions skyrocket. Report
Pain Therapeutics reports success in Phase III Remoxy trial. Report
Pain management debate in focus. Report

SPOTLIGHT: King asks FDA to block ZymoGenetics' drug

Fri, 02 Nov 2007 07:59:53 -0400

King Pharmaceuticals has petitioned the FDA not to approved ZymoGenetics' rThrombin, a treatment for surgical bleeding. King claims that ZymoGenetics' drug has not been sufficiently tested and that it poses a risk to the public if approved. Why is King so interested? Well, because the company makes a competing version of the drug and stands to lose market share if a new version of the product is approved. If the FDA takes the request into account, it could be a major setback for ZymoGenetics. Report

King, Acura ink drug abuse tech deal

Wed, 31 Oct 2007 07:59:57 -0400

King Pharmaceuticals is paying Acura Pharmaceuticals $30 million up front for licensing rights to Acura's technology for preventing drug abuse. The North American pact will support King's work developing and commercializing four opioid analgesic pain products. Acura will get up to $28 million in milestones for each product developed and commercialized under the agreement, royalties and a $50 million cash payment for the first year in which the combined sales of the therapies exceed $750 million.

"Opioid analgesics play a very important role in the effective management of moderate to severe pain," says King CSO Dr. Eric Carter. "However, abuse and misuse of these medicines represents a major area of concern among physicians, pharmacists, patients, and the health- care sector. At King, we are committed to addressing this important public health issue and the needs of our customers by offering pain medicines that are proven effective and incorporate safe and appropriate means to discourage abuse and misuse."

- read the release for more info

King cuts 20% of workforce

Fri, 19 Oct 2007 06:59:56 -0400

Tennessee-based King Pharmaceuticals said it will cut its workforce by 20 percent due to problems the company is having with its Altace franchise. Last month King Pharmaceuticals lost its fight with Indian generics maker Lupin when a federal appeals court invalidated the patent on Altace, a drug for high blood pressure. The company is also speeding up plans to focus its business on neuroscience and hospital/acute. The cuts will save the company between $75 million and $90 million in 2008.

- see King's release

Related Articles:
King regroups after patent fight loss. Report
King bails on Palatin's FSM program. Report
FDA rejects King's Altace. Report

Palatin slashes staff following FDA objections

Wed, 26 Sep 2007 06:59:56 -0400

With its lead therapy raising some serious safety concerns at the FDA, Palatin Technologies announced that it is whacking about a third of its workforce. The move, which comes just two weeks after King Pharmaceuticals dropped out of its partnership with Palatin, will leave Cranbury, NJ-based Palatin with a workforce of 64 and is designed to save about $4 million in costs. Palatin has run into a roadblock with the development of bremelanotide. Regulators have questioned the drug's safety, noting a rise in blood pressure among volunteers taking the therapy. Palatin says it will continue on with a collaboration with AstraZeneca on obesity therapies as well as further developing a candidate for treating congestive heart failure.

- see the release on the cutbacks

Related Articles:
King bails on Palatin's FSM program. Report
Palatin researchers tout data. Report
Safety concerns force delay for Phase III ED trial. Report

King bails on Palatin's FSM program

Mon, 10 Sep 2007 06:59:57 -0400

Less than two weeks after U.S. drug regulators raised serious doubts about the safety of bremelanotide for ED, King Pharmaceuticals has decided to drop out of its co-development pact with Palatin Technologies. Regulators raised red flags on the therapy, noting an increase in blood pressure as a serious safety issue for patients that should prevent a late-stage study.

"Regarding the FSD program with bremelanotide, we have completed an exploratory at-home Phase II clinical trial in pre- and postmenopausal women and are in the final stages of compiling the data. We anticipate releasing the results later this month," stated Dr Carl Spana, CEO of Palatin. Palatin is also working a development program for an obesity drug in a program paired with AstraZeneca.

- see the release
- read this report from DrugResearcher

Related Articles:
Safety concerns force delay for Phase III ED trial. Report
Palatin researchers tout data. Report
Gene therapy approach may work against ED. Report

Safety concerns force delay for Phase III ED trial

Thu, 30 Aug 2007 06:59:57 -0400

With regulators at the FDA waving a red flag over safety concerns, King Pharmaceuticals and Palatin Technologies announced that they will delay the planned launch of a Phase III trial of bremelanotide for ED. Regulators said they were concerned by data in Phase I and Phase II that the drug raised patients' blood pressure in certain patients. Researchers had hoped to pursue the use of the drug as a first-line therapy, but the FDA says the best approach may be for use among patients who have not responded well to other, marketed ED drugs.

- check out the release
- read the MarketWatch report on the trial

ALSO NOTED: NicOx gains $5M from Merck; King sells manufacturing facility; and much more...

Mon, 16 Jul 2007 06:59:50 -0400

> Merck has begun clinical trials to develop nitric oxide-donating antihypertensive agents, triggering a €5 million milestone payment to NicOx. Release

> King Pharmaceuticals is selling a manufacturing facility in Michigan for $90 million. Release

> Genzyme says that a post-marketing study of Carticel demonstrated that it helped patients who had not benefited from procedures to repair knee cartilage damage. Release

> Researchers at the University of Oregon say that an individual's capacity of short-term memory is a strong predictor of IQ and scholastic achievement. People with high IQs can think about more things at once. Release

And Finally... In an effort to boost biotech drug sales, some companies are putting a "satisfaction guaranteed" promise on their products. Article

SPOTLIGHT: King buys Avinza from Ligand

Wed, 06 Sep 2006 20:01:33 -0400

Ligand Pharmaceuticals has agreed to sell Avinza for $313 million plus royalties to King Pharmaceuticals. Approved in 2002, Avinza is a once-a-day treatment for chronic to moderate-to-severe pain in patients who require continuous, around-the-clock opioid therapy for an extended period of time. Release

Palatin researchers tout sexual dysfunction data

Wed, 02 Aug 2006 20:01:38 -0400

Palatin Technologies and King Pharmaceuticals released new data from a Phase IIa trial that demonstrates the efficacy of its experimental drug bremelanotide for female sexual dysfunction. Almost three out of four women in the small study reported heightened genital arousal while taking the therapy, compared to one in four of the women receiving a placebo. Women receiving the therapy also engaged in a higher rate of sexual activity compared to the control group. Twenty-six women were involved in the mid-stage study. One hundred patients will be enrolled for Phase IIb.

- read the report from UPI on the trial data