Pharma BD Deal Intelligence
A $285M asset purchase that quietly did its job then got pruned. King paid Bristol-Myers Squibb $285 million for U.S. rights to three mature brands plus a paid-up Corgard license, but divested one of the four products six years later and left no clear post-close revenue trail.
A small, margin-rich bolt-on that did its job quietly, then got pruned — no home run, no disaster.
Full analysis, sources & comparables →Gregory: 'These products complement our key cardiovascular product portfolio and provide King with an opportunity to further capitalize on the reputation and…
BMS recorded a $240M pre-tax gain on the divestiture of Corzide, Delestrogen, Florinef and the Corgard U.S. license to King Pharmaceuticals.
King's 10-K describes the August 8, 2001 acquisition of three product rights and a license from BMS for $285M, consistent with King's branded-acquisition…
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King paid BMS ~$285M cash for US rights to Corzide, Delestrogen, Florinef plus fully-paid Corgard license. Asset purchase, not entity.
A small, margin-rich bolt-on that did its job quietly, then got pruned — no home run, no disaster.
Assessment window: 15yr post-close.
Corgard (nadolol) and Corzide (nadolol/bendroflumethiazide) are non-selective beta-blockers indicated for hypertension and angina. Delestrogen (estradiol valerate injection) is parenteral estrogen replacement therapy. Florinef (fludrocortisone) is mineralocorticoid replacement for primary/secondary adrenocortical insufficiency (Addison's disease) and salt-losing adrenogenital syndrome.
By 2001, the beta-blocker class was deeply genericized and crowded: AstraZeneca's Toprol-XL (metoprolol succinate), GSK's Coreg (carvedilol), and generic atenolol/propranolol led the U.S. hypertension market alongside ACE inhibitors (Merck's Vasotec, Pfizer's Accupril) and rising ARBs (Cozaar, Diovan). Nadolol/Corgard, FDA-approved 1979, was a small-share legacy beta-blocker (~1M U.S. prescriptions annually per Wikipedia/FDA label). Florinef occupied a near-monopoly niche in adrenal insufficiency with no commercially competing branded alternative — a small but defensible orphan-like market. Delestrogen competed with depot-estradiol generics and oral estrogen replacement (Premarin, Estrace). King's strategy, per its 10-K, was acquiring branded mature assets that BMS no longer prioritized — leveraging King's specialty sales force without R&D investment. The deal extended King's pattern (Altace 1998, Levoxyl) of buying castoff branded products at attractive multiples, with BMS recording a $240M pre-tax gain — implying the products had been written down on BMS's books well below the $285M sale price.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| King Pharmaceuticals Inc. / Bristol-Myers Squibb (Corgard/Corzide/Delestrogen/Florinef rights) (this deal) | 2001 | $285M | 51 |
| King Pharmaceuticals Inc. / Jones Pharma Incorporated | 2000 | $3.4B | 54 |
| King Pharmaceuticals Inc. / Aventis Pharmaceuticals (Intal/Tilade/Synercid rights) | 2002 | $275M | 26 |
| Abbott Laboratories / Knoll Pharmaceutical Company (BASF Pharma) | 2001 | $6.9B | 100 |
| Vertex Pharmaceuticals Incorporated / Aurora Biosciences Corporation | 2001 | $592M | 95 |
| Amgen Inc. / Immunex Corporation | 2001 | $16.0B | 91 |
| Swedish Orphan Biovitrum AB / Biovitrum | 2001 | $493M | 84 |