Pfizer is one step closer to taking over the world. Pfizer Inc. bought King Pharmaceuticals Tuesday for a whopping $3.6 billion in its first major move since purchasing Wyeth last year.
Pfizer’s purchase of King Pharmaceuticals was a strategic move to increase exposure to the pain meds market which is a business that will grow exponentially as the baby boomers age. Unlike other pain medications that are often abused, King aims to manufacture drugs that have built in anti-abuse mechanisms.
Pfizer’s CEO Jeffrey Kindler made a statement:
We are highly impressed by King’s innovative products and technology in the pain relief disease area, as well as by its success in advancing promising compounds in its pipeline. The combination of our respective portfolios in this area of unmet medical need is highly complementary and will allow us to offer a fuller spectrum of treatments for patients across the globe who are in need of pain relief and management.
From the October 12th, 2010 Press Release:
The transaction will further expand Pfizer’s business profile, providing immediate, incremental diversified revenues generated by King’s portfolio… King’s three 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 maximize King’s assets with Pfizer’s global organization’s scale and resources.
This is all fine and good but it has been reported that the merger could do away with 8,000 jobs worldwide.