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King Pharmaceuticals Acquires Ortho-Prefest.(marketing agreement with Ortho-McNeil Pharmaceutical Inc.)
2002 MAY 30 - (NewsRx.com & NewsRx.net) -- King Pharmaceuticals, Inc., (KG) announced that the company and Ortho-McNeil Pharmaceutical, Inc., a Johnson & Johnson subsidiary, have signed a definitive agreement for King to acquire Ortho-Prefest (estradiol/norgestimate) tablets in the United States, its territories and possessions, and the Commonwealth of Puerto Rico, including the related new drug application, investigational new drug application, copyrights, and patents or licenses to such patents.
King will pay $108 million for the product upon closing, plus $7 million upon approval of the U.S. Food and Drug Administration permitting King to rename the product "Prefest" (during a transitional period, King will be permitted to continue selling the product under the "Ortho-Prefest" brand). The annual net sales run rate of the product based on year-to-date 2002 IMS America prescription data is an estimated $26 million.
The transaction is expected to close during the second quarter of 2002.
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