Pharma BD Deal Intelligence

King Pharmaceuticals Inc. / Aventis Pharmaceuticals (Intal/Tilade/Synercid rights)

2002 · Licensing/Option · $275M · Complete

A $199.5M upfront bolt-on that steadily wrote itself down to nothing over eight years. King impaired Intal, Tilade, and Synercid in successive charges through 2008, discontinued Intal outright in 2010 rather than fund a CFC-free reformulation, and never hit the MRSA milestone—King itself was sold to Pfizer in 2011.

CALLED IT — OFF BY 24

All three acquired brands were written down and Intal was discontinued outright — a small bolt-on that steadily bled value for eight years

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The coverage arc

Dec 30, 2002 PharmaBiz Neutral

On December 30, 2002, King Pharmaceuticals licensed or acquired the rights to three branded pharmaceutical products from Aventis for the initial cash payment…

Jan 01, 2023 CDC Asthma Surveillance Neutral

In 2001, about 20.3 million people (7.4% of the U.S. population) had asthma among all ages; between 2002 and 2018, current asthma prevalence ranged from a low…

Jan 01, 2024 Wikipedia (Quinupristin/dalfopristin) Bearish

Combination of two antibiotics used to treat infections caused by staphylococci and by vancomycin-resistant Enterococcus faecium; the two components work…

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December 30, 2002 acquisition of US rights to Intal (cromolyn), Tilade (nedocromil) and Synercid (quinupristin/dalfopristin) plus associated IP.

Did it work? Outcome assessment

All three acquired brands were written down and Intal was discontinued outright — a small bolt-on that steadily bled value for eight years

Strategic verdict
Failed to Achieve

Key facts

Disease & market context

Asthma & Vancomycin-Resistant Enterococcus Infections

$197M King upfront cash to Aventis (USD mm) for Intal/Tilade/Synercid rights

Disease Overview

This is a multi-product portfolio acquisition spanning two indications. Intal (cromolyn sodium) and Tilade (nedocromil sodium) are inhaled mast-cell stabilizers used as anti-inflammatory maintenance therapy for asthma — a category already in commercial decline by 2002 due to inhaled corticosteroids and leukotriene antagonists (Singulair, Accolate). Synercid (quinupristin/dalfopristin) is an injectable streptogramin antibiotic for serious vancomycin-resistant Enterococcus faecium (VREF) infections — a niche hospital antibiotic.

Competitive Landscape

By 2002 the asthma market had been redefined by inhaled corticosteroids (Flovent, Pulmicort, AstraZeneca's Symbicort), ICS/LABA combos (Advair, launched 2001), and leukotriene receptor antagonists (Merck's Singulair, ZD3525/Accolate). Cromolyn (Intal) and nedocromil (Tilade) were legacy assets with patents already expired and generic competition active — King's bet was sales-force leverage on declining branded scripts, not innovation. On the antibiotic side, Synercid competed against vancomycin (cheap and standard) and faced 2000-launch linezolid (Pfizer's Zyvox), which had oral and IV formulations and rapidly took share for VRE infections. Per pharmabiz coverage, on December 30, 2002 King paid '$197.5 million, plus $3.8 million of expenses' for these rights, with milestones up to $64.8M tied to Synercid VREF performance. Forward look: Synercid did $28M in 2002 sales but the FDA removed the VREF bacteremia indication from the label in August 2010 due to insufficient post-marketing efficacy data; Pfizer (which acquired King for $3.6B in October 2010) discontinued Synercid in 2022 with no other manufacturers per Wikipedia. Intal capsule was determined 'not withdrawn for safety/efficacy' in October 2013 but lost commercial momentum to ICS-based therapy. The deal is a textbook late-lifecycle asset roll-up that delivered modest cash flow but no franchise value — King itself was absorbed into Pfizer's pain portfolio in 2010 (Embeda, Avinza, EpiPen the strategic prizes, not asthma legacy products).

Related deals — scored

DealYearValueOutcome
King Pharmaceuticals Inc. / Aventis Pharmaceuticals (Intal/Tilade/Synercid rights) (this deal)2002$275M26
King Pharmaceuticals Inc. / Jones Pharma Incorporated2000$3.4B54
King Pharmaceuticals Inc. / Bristol-Myers Squibb (Corgard/Corzide/Delestrogen/Florinef rights)2001$285M51
Roche Holding AG / Chugai Pharmaceutical Co. Ltd.2002$1.4B100
Gilead Sciences Inc. / Triangle Pharmaceuticals Inc.2002$464M96
Amgen Inc. / Immunex Corporation2002$16.0B92
Novartis AG / Lek Pharmaceuticals d.d.2002$876M88

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