KG BUY @ 32.25 - It is very cheap on baseless rumors - presentation today at 2:10 conference. Rumor is mostly on a drug which is not scheduled to expire until 2008. It needs the market and sector to turn positive, but when it does it could do well. Will sell if it break below $31.85
Mean est. = $1.29 for FY2002
Performance = siliconinvestor.com
King Pharmaceuticals Responds to Recent Unjustified Share Price Decline
BRISTOL, Tenn., Feb 4, 2002 /PRNewswire-FirstCall via COMTEX/ -- King Pharmaceuticals, Inc. (NYSE: KG chart, msgs) confirmed today, in response to reported baseless stories circulating last week, that the Company remains highly confident in the enforceability of the Altace(R) (ramipril) composition of matter patent that expires in October 2008. Also, King continues to strategically focus on potential acquisitions that upon closing will not have a dilutive effect on King's projected estimates for earnings per share, excluding any special charges. The Company believes that reported baseless stories to the contrary contributed significantly to last week's unjustified decline of approximately 14% in King's share price. Since the market opening on Monday, January 28, 2002, King's share price declined from $40.20 to $34.70 at the market closing on Friday, February 1, 2002.
Jefferson J. Gregory, President and Chief Executive Officer of King, stated, "We believe the continued exclusivity of our largest product, Altace(R), is well protected by a composition of matter patent that does not expire until October 2008. The Company is privy to the conclusions of well-qualified patent counsel who have reviewed the patents related to Altace(R) and concluded that the 2008 composition of matter patent should prove clearly enforceable if ever challenged. Moreover, we are not aware of any present intent to challenge the 2008 patent. If such a challenge ever arises, the Company intends to aggressively and, we believe, successfully defend against any such challenge."
Mr. Gregory further commented, "King continues to successfully execute and build on our proven growth strategies. An important consideration when evaluating a potential acquisition, in addition to growth potential and any complementary synergies, is whether the transaction will be accretive to King's projected estimates for earnings per share. All product and company acquisitions to date have been accretive upon closing, and this remains an important factor when considering potential opportunities." Mr. Gregory added, "With over $900 million in cash, we believe King is well positioned for the continued successful execution of our proven acquisition growth strategies."
King, headquartered in Bristol, Tennessee, is a vertically integrated pharmaceutical company that manufactures, markets, and sells primarily branded prescription pharmaceutical products. King, an S&P 500 Index company, seeks to capitalize on opportunities in the pharmaceutical industry created by cost containment initiatives and consolidation among large global pharmaceutical companies. King's strategy is to acquire branded pharmaceutical products and to increase their sales by focused promotion and marketing and through product life cycle management. |
