King Pharmaceuticals (KG/NYSE) is among the precious few portfolio holdings that hasn't absolutely tanked this year. Monday King announced that Alpharma Inc. has agreed to getting bought out for $1.6 billion, subject to shareholder approval.
King and Alpharma lead four other drugmakers racing to develop powerful pain medication resisting abuse. Both companies expect new drugs to be approved by the end of next month. From the linked Bloomberg report:
“It really does create a pain juggernaut company,
especially as the wave of the future seems to be these abuse-resistant opioids,” Davis said in a telephone interview. “I
wouldn’t say that it was a steal for King, but I would say that
it’s a good deal for both sides.”
Apparently good news during a time when most news seems bad or worse.
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