In October 2010, Pfizer announced it was acquiring King Pharmaceuticals for $3.6 billion in order to strengthen its portfolio, which has been hit (like many pharma companies) with challenges in maintaining a strong product pipeline.
King has an attractive portfolio that Pfizer considers eminently complementary to its own. Â According to a Pfizer news release, King’s portfolio includes:
…a prescription pharmaceutical business focused on delivering new formulations of pain treatments designed to discourage common methods of misuse and abuse, the Meridian auto- injector business for emergency drug delivery, which develops and manufactures the EpiPenÂ® and is a long-term, critical supplier to the U.S. Department of Defense, and an animal health business that offers a variety of feed additive products for a wide range of species.
Among these products includes a very strong position in the hemostasis market, which is a $1.5 billion global market opportunity (report #S180). The hemostasis market, which has a relatively low market barrier to market entrance, is accordingly populated by a large number of competitors:
Hemostasis Market Competitors 2010
King is the #3 player in the global market for hemostats, so the acquisition by Pfizer gives them (among other portfolio benefits) an immediate and significant position in this market.
Hemostasis is a key segment in the market for wound closure products. See report #S180.