BRISTOL, Tenn., Feb. 16 /PRNewswire-FirstCall/ -- King Pharmaceuticals,
Inc. (NYSE: KG) announced today that it has entered into a collaboration with
Arrow International Limited and certain of its affiliates (collectively,
"Arrow") to commercialize novel formulations of ALTACE(R) (ramipril). Under a
series of agreements, Arrow has granted King rights to certain current and
future New Drug Applications ("NDAs") regarding novel formulations of ALTACE
and intellectual property, including patent rights and technology licenses
relating to these novel formulations. Under certain conditions, Arrow will be
responsible for the manufacture and supply of new formulations of ALTACE for
King. Additionally, King has granted Cobalt Pharmaceuticals, Inc. a non-
exclusive right to enter into the U.S. ramipril market with a generic capsule
formulation of ramipril, which would be supplied by King. Cobalt is an
affiliate of Arrow, but is not a party to the collaboration.
Steve Andrzejewski, Chief Commercial Officer of King, stated, "With this
transaction, we believe we have added to our development pipeline promising
potential line extensions for ALTACE, our leading branded ACE Inhibitor.
Importantly, we believe this transaction enhances the long-term value of our
ALTACE franchise and is consistent with our strategy to maximize the potential
of our existing portfolio of products."
Pursuant to the agreements, King made an upfront payment to Arrow of $35
million. Arrow will also receive payments from King of $50 million based on
the timing of certain events and could receive an additional $25 million based
on the occurrence of certain conditions. Additionally, Arrow will earn fees
for the manufacture and supply of new formulations.
About King Pharmaceuticals
King, headquartered in Bristol, Tennessee, is a vertically integrated
branded pharmaceutical company. King, an S&P 500 Index company, seeks to
capitalize on opportunities in the pharmaceutical industry through the
development, including through in-licensing arrangements and acquisitions, of
novel branded prescription pharmaceutical products in attractive markets and
the strategic acquisition of branded products that can benefit from focused
promotion and marketing and product life-cycle management.
Forward-looking Statements
This release contains forward-looking statements which reflect
management's current views of future events and operations, including, but not
limited to, statements pertaining to the effect of the agreements on King's
ALTACE franchise. These forward-looking statements involve certain
significant risks and uncertainties, and actual results may differ materially
from the forward-looking statements. Some important factors which may cause
actual results to differ materially from the forward-looking statements
include: dependence on King's and Arrows's ability to obtain regulatory
approval for new formulations of ALTACE; dependence on the companies'
abilities to successfully manufacture new formulations of ALTACE after
obtaining the necessary regulatory approval; dependence on King's ability to
successfully market and sell new formulations of ALTACE; dependence on the
availability and cost of raw materials; dependence on the unpredictability of
the duration and results of the U.S. Food and Drug Administration's ("FDA")
review of Investigational New Drug Applications, NDAs, and supplemental New
Drug Applications, and/or the review of other regulatory agencies worldwide;
dependence on compliance with FDA and other government regulations that relate
to King's and Arrow's respective businesses; dependence on changes in general
economic and business conditions; changes in current pricing levels; changes
in federal and state laws and regulations; changes in competition; unexpected
changes in technologies and technological advances; and manufacturing capacity
constraints. Other important factors that may cause actual results to differ
materially from the forward-looking statements are discussed in the "Risk
Factors" section and other sections of King's Form 10-K for the year ended
December 31, 2004 and Form 10-Q for the third quarter ended September 30,
2005, which are on file with the U.S. Securities and Exchange Commission.
King does not undertake to publicly update or revise any of its forward-
looking statements even if experience or future changes show that the
indicated results or events will not be realized.
SOURCE King Pharmaceuticals, Inc.
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Related links:
http://www.kingpharm.com
Company News On-Call:
http://www.prnewswire.com/comp/120319.html
CONTACT:
James E. Green, Executive Vice President,
Corporate Affairs, +1-423-989-8125, or David E. Robinson, Senior
Director, Corporate Affairs, +1-423-989-7045, both of King
Pharmaceuticals, Inc.
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