"We believe this compelling combination would create a strong platform for sustainable long-term growth to better address the changing healthcare industry and provide meaningful, cost-effective medicines that improve the quality of life for patients," said Brian A. Markison, Chairman, President and Chief Executive Officer of King. "The transaction would create a diversified specialty pharmaceutical company with greater commercialization capabilities, an expanded portfolio of pain management products and a strengthened pipeline which would include multiple platform technologies."
Mr. Markison continued, "Our $33.00 per share all-cash proposal provides Alpharma stockholders with a substantial cash premium for their investment in the company. We are confident that this combination would deliver significant benefits and superior value to our respective stockholders and employees and create a stronger platform to deliver innovation to patients, prescribers and customers. Importantly, it would also further diversify King's business with an additional source of steady cash flow from Alpharmaâs Animal Health division, a leading feed additives business. In addition, a combination with Alpharma would deliver significant synergies."
"We believe our all-cash proposal is too compelling to ignore. In light of the fact that the Alpharma Board declined this proposal, we think it is important for the stockholders of both companies to be aware of this exciting opportunity. It remains our strong preference to work cooperatively with Alpharma regarding this proposal," Mr. Markison added.
King's proposal is subject to the negotiation of a mutually acceptable merger agreement, the completion of certain limited and confirmatory due diligence, and the satisfaction of other customary conditions. King believes this proposed combination could receive all necessary regulatory approvals and be completed by the end of 2008.
About King Pharmaceuticals, Inc.
King, headquartered in Bristol, Tennessee, is a vertically integrated branded pharmaceutical company. King, an S&P 500 Index company, seeks to capitalize on opportunities in the pharmaceutical industry through the development, including through in-licensing arrangements and acquisitions, of novel branded prescription pharmaceutical products and technologies that complement the Company's focus in specialty-driven markets, particularly neuroscience, hospital and acute care. King strives to be a leader and partner of choice in bringing innovative, clinically-differentiated medicines and technologies to market. For more information, visit http://www.kingpharm.com.