Full Description

King Pharmaceuticals, Inc., incorporated in 1993, is a vertically integrated pharmaceutical company that performs basic research and develops, manufactures, markets and sells branded prescription pharmaceutical products. It operates in four segments: branded prescription pharmaceuticals business, animal health business, Meridian auto-injector business and royalties. The Company’s wholly owned subsidiaries include Alpharma Inc., Meridian Medical Technologies, Inc., Monarch Pharmaceuticals, Inc., King Pharmaceuticals Research and Development, Inc., Parkedale Pharmaceuticals, Inc. and Monarch Pharmaceuticals Ireland Limited. The Company markets its branded prescription pharmaceutical products to general/family practitioners, internal medicine physicians, neurologists, pain specialists, surgeons and hospitals across the United States and in Puerto Rico. On December 29, 2008, King Pharmaceuticals, Inc. acquired Alpharma Inc.

Branded Prescription Pharmaceuticals

The Company’s branded prescription pharmaceutical products are divided into four categories: neuroscience (including Skelaxin, Avinza and Flector Patch), hospital (including Thrombin-JMI), and legacy products (including Altace, Levoxyl, Cytomel and Bicillin). Branded prescription pharmaceutical products represented approximately 81% of its total net revenues for the year ended December 31, 2008. Skelaxin is a muscle relaxant tablet indicated for the relief of discomforts associated with acute, painful musculoskeletal conditions. Flector Patch is a non-steroidal anti-inflammatory patch for the treatment of acute pain due to minor strains, sprains and contusions. Avinza is a formulation of morphine indicated as a once-daily treatment for moderate to severe pain in patients who require continuous opioid therapy for an extended period of time.

Thrombin-JMI is a chromatographically purified topical (bovine) thrombin solution indicated as an aid to hemostasis whenever oozing blood and minor bleeding from capillaries and small venules is accessible. Altace is an oral administration indicated for the treatment of hypertension and reduction of the risk of stroke, myocardial infarction (heart attack) and death from cardiovascular causes in patients 55 and over with either a history of coronary artery disease, stroke or peripheral vascular disease or with diabetes and one other cardiovascular risk factor (such as elevated cholesterol levels or cigarette smoking). Altace is also indicated in stable patients who have demonstrated clinical signs of congestive heart failure after sustaining an acute myocardial infarction. Levoxyl is a tablet indicated for thyroid hormone replacement or supplemental therapy for hypothyroidism. Cytomel is a tablet indicated in the medical treatment of hypothyroidism. Bicillin is a penicillin-based antibiotic suspension for deep muscular injection indicated for the treatment of infections due to penicillin-G-susceptible microorganisms.

Animal Health

The Company’s animal health business is engaged in the development, registration, manufacture and marketing of medicated feed additives (MFAs) and water soluble therapeutics, primarily for poultry, cattle and swine. Its MFAs and water soluble products are anti-infective animal health products that are added to the feed and water of livestock and poultry. Albac is a bacitracin-based MFA used to prevent and/or treat diseases, maintain health and/or improve feed efficiency. Aureomycin, Aureomycin-combination products, Aurofac and Chlormax are feed-grade antibiotics containing chlortetracycline used in combination with an antibacterial to prevent and/or treat diseases, maintain health and/or improve feed efficiency. BMD is a bacitracin-based MFA used to prevent and/or treat diseases and maintain health. Bio-Cox and Cygro MFAs are used to prevent and control coccidiosis in poultry. Bovatec and AvatecMFAs are used to prevent and control coccidiosis in cattle and poultry and to maintain health and improve feed in cattle. Deccox is an MFA used to prevent and control coccidiosis in poultry, cattle and calves. Robenz and Cycostat are used to prevent coccidiosis in poultry and rabbits.

Meridian Auto-Injector

The Company’s Meridian Auto-Injector segment manufactures and markets pharmaceutical products that are delivered using an auto-injector. An auto-injector is a pre-filled, pen-like device that allows a patient or caregiver to automatically inject a precise drug dosage. Its auto-injector products consist of a variety of acute care medicines. The commercial pharmaceutical business of the Company’s Meridian segment consists of EpiPen, an auto-injector filled with epinephrine for the emergency treatment of anaphylaxis resulting from severe or allergic reactions to insect stings or bites, foods, drugs and other allergens, as well as idiopathic or exercise-induced anaphylaxis.

Its Meridian Auto-Injector segment includes pharmaceutical products that are sold primarily to the United States Department of Defense (DoD) under an industrial base maintenance contract. These products include the nerve agent antidotes AtroPen and ComboPen, and the Antidote Treatment Nerve Agent Auto-injector, which is referred to as the ATNAA. AtroPen is an atropine-filled auto-injector and ComboPen consists of an atropine-filled auto-injector and a pralidoxime-filled auto-injector. The ATNAA utilizes a dual chambered auto-injector and injection process to administer atropine and pralidoxime, providing a means of delivering these nerve agent antidotes. Other products sold to the DoD include a diazepam-filled auto-injector for the treatment of seizures and a morphine-filled auto-injector for pain management.

Royalties

The Company has developed a marketed adenosine-based product, Adenoscan, for which it receives royalty revenues. Adenoscan is a sterile, intravenous solution of adenosine administered intravenously as an adjunct to imaging agents used in cardiac stress testing of patients who are unable to exercise adequately. The Company is a party to an agreement under which Astellas Pharma US, Inc. (Astellas) manufactures and markets Adenoscan in the United States and Canada in exchange for royalties. It has licensed rights to other third-party pharmaceutical companies to manufacture and market Adenoscan in certain countries other than the United States and Canada in exchange for royalties. Royalties received by the Company from sales of Adenoscan outside of the United States and Canada are shared with Astellas.

The Company competes with Eli Lilly and Company, Pennfield, Phibro Animal Health, Novartis and Huvepharma.