Pharma BD Deal Intelligence

King Pharmaceuticals Inc. / Jones Pharma Incorporated

2000 · Acquisition/Merger · $3.4B · Complete

CALLED IT — OFF BY 17
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The coverage arc

Jul 13, 2000 Jones Pharma 8-K Exhibit 99.1 — Merger Announcement Press Release (SEC EDGAR) Bullish

King expects the transaction to be accretive to earnings immediately upon closing... and will add approximately 3% to 4% to projected earnings per share for…

Jul 14, 2000 The Pharma Letter Bullish

All-stock deal valued at announcement around $3.4B (1.5 King shares per Jones share); ~half of Jones revenue came from thyroid franchise (Levoxyl, Tapazole,…

Aug 31, 2000 Wikipedia (King Pharmaceuticals) Bullish

Most significant 2000 purchases were Levoxyl, Thrombin and Cytomel; thyroid franchise funded by Altace cash flow and became core to King's branded specialty…

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King Pharmaceuticals announced an all-stock acquisition of Jones Pharma valued at ~$3.4B at announcement (recorded as ~$2.4B pooling at close). Each Jones share exchanged for 1.5 King shares. Brought thyroid franchise and an experienced specialty sales force. Closed Aug 31, 2000.

Did it work? Outcome assessment

Strategic verdict
Partially Achieved
Pipeline outcome
Mixed

Key facts

Related deals — scored

DealYearValueOutcome
King Pharmaceuticals Inc. / Jones Pharma Incorporated (this deal)2000$3.4B54
King Pharmaceuticals Inc. / Bristol-Myers Squibb (Corgard/Corzide/Delestrogen/Florinef rights)2001$285M51
King Pharmaceuticals Inc. / Aventis Pharmaceuticals (Intal/Tilade/Synercid rights)2002$275M26
Novo Nordisk A/S / Emisphere Technologies2020$1.4B90
Roche Holding AG / Corange Ltd. (Boehringer Mannheim Group)1997$11.0B88
Sanofi SA / Genzyme Corporation2011$20.1B84
Novo Holdings A/S / Catalent (manufacturing sites)2024$11.0B81

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