The Wall Street Journal (11/25) reports, "After months of resistance, Alpharma Inc. has accepted a revised $1.6 billion takeover offer from King Pharmaceuticals Inc. The deal values Alpharma's shares at $37 each, a 67 percent premium over the closing price Aug. 4, the date of King's initial proposal, and unchanged from a sweetened offer made Sept. 15."
The AP (11/25) adds that "a key goal of the deal is to expand King's pain drug franchise, which consists of the chronic pain treatment Avinza (morphine sulfate) and the muscle relaxant Skelaxin (metaxalone). They made up about half of the company's revenue in 2007." Bridgewater, NJ-based "Alpharma gets most of its revenue from animal health products, though the bulk of its pharmaceutical sales come from the morphine painkiller Kadian (morphine sulfate extended-release). It also launched the Flector (diclofenac) Patch, a pain treatment, in January."
Bloomberg News (11/24, Randall) pointed out that "the acquisition weds the makers of two of the four extended-release morphine drugs currently on the market" -- Avinza and Kadian. Therefore, the "Federal Trade Commission may require the companies to sell one of the drugs before the acquisition is approved."
In the Wall Street Journal (11/24) Health Blog, Sarah Rubenstein wrote, "Alpharma is seeking approval for a pain drug called Embeda (morphine extended-release with sequestered naltrexone hydrochloride), which is also supposed to be less susceptible to abuse. [A Food and Drug Administration (FDA)] panel that looked at Embeda earlier this month found it to be only a 'small advance' in curbing abuse."
Forbes (11/24, LaMotta) noted that "both companies recently met with an FDA advisory panel to discuss the labeling of their pain management medications. King and Alpharma are hoping to get the words 'abuse-deterrent' on the labeling for their pain management drugs once they are approved."
The Financial Times (11/24, Jack), the New York Times (11/24, Sorkin) DealBook blog, and AHN (11/25, Jaworski) also cover the story.
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