King Pharmaceuticals is doing an IPO in June of 4M shares of common stock. Current Shareholders are selling 2.58M shares also. So, after the IPO, there will be 32M shares of stock issued, with 6.58M in the float. Insiders own almost 60% of the company, with the CEO owning 25.5%. The other shares are owned, I believe, by employees thru a stock-ownership plan.
I started looking at this company last fall, when they announced the IPO. They delayed it for 7-8 months until they could acquire the Parkedale facility in Rochester, MI and 15 branded products from Warner-Lambert.
This company basically buys product lines from the larger pharmaceutical companies who don't have time to market them anymore. They take the product and re-market it and increase sales. Some of the products they currently have the licensing on: Cortisporin, Neosporin, Septra, and Pitocin (drug to induce labor in pregnant women). They have successfully purchased more than 30 branded products from big-name pharmaceutical companies.
One drug they aquired in December 1994, Anexsia, for $17.6M. They increased the sales volume on that one product, and sold it back exactly one year later for $32M, for a one-year gain of $13M.
Sales for company in 1997, without the acquisitions, was $47M, with a .25/EPS. Adjusted sales, with the acquisitions taken into account, figures are: $122.5M, .29/EPS.
Corporate Offices are in Bristol, Tennessee.
Kyle Macione, Executive Vice President, Investor Relations
423-989-8000.
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