Pfizer buying King Pharma

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Pfizer buying King Pharma

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The world’s biggest drugmaker, Pfizer, continues to expand.

It has agreed to buy King Pharmaceuticals for the equivalent of 2.6 billion euros in cash.

That is a 40 percent premium over King’s closing share price on Monday.

The deal will boost Pfizer’s presence in the market for pain drugs.

It will also shore up its earnings which will be hit by the expiration of the US patent for Lipitor, its biggest selling product.

The cholesterol-lowering drug can then be copied by competitors as a generic version.

King Pharmaceuticals is the latest acquisition by Pfizer, which is still digesting last year’s 48 billion euro purchase of Wyeth.

The company said it expects to generate initial cost-savings of more than 145 million euros.