Pfizer, Inc. · NYSE:PFE
Pfizer — Merger or Acquisition (October 2010)
11 slides from Pfizer's merger presentation, Oct 12, 2010
Slide 1: Pfizer to Acquire King Pharmaceuticals, Inc.
Pfizer to Acquire King Pharmaceuticals, Inc. October 12, 2010 1
Slide 2: Chuck Triano, Senior Vice President, Investor Relations
Chuck Triano Senior Vice President, Investor Relations
Slide 3: Forward-looking Statements and Non-GAAP Financial Information
Forward-looking Statements and Non-GAAP Financial Information ● Our discussions during this conference call will include forward- looking statements. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ a
Slide 4: Additional Information
Additional Information ● The tender offer discussed in this presentation has not yet commenced, and this presentation is neither an offer to purchase nor a solicitation of an offer to sell securities. At the time the tender offer is commenced, Pfizer will cause a new subsidiary, Parker Tennessee Cor
Slide 5: Frank D'Amelio, Senior Vice President, Chief Financial Officer
Frank D’Amelio Senior Vice President, Chief Financial Officer
Slide 6: Acquisition Thesis
Acquisition Thesis ● Provides significant and immediate value creation by leveraging Pfizer’s scale and business unit structure ● Enables continued diversification of product revenues, mitigating single product and single product pipeline risk ● Enhances position within strategically important pain
Slide 7: Financial Overview
Financial Overview Acquisition Terms ● Tender offer for $14.25 per share, or ~$3.3 billion (net of cash & cash equivalents1) ● Closing subject to tender of at least a majority of King’s shares as well as customary regulatory approvals ● Utilizes existing cash Financial Impact ● Immediately accretive
Slide 8: King Pharmaceuticals, Inc. Overview
King Pharmaceuticals, Inc. Overview Company Description Company Financial Information ● Publicly traded company incorporated in 1993 Market Cap (10/11/10) $2.5 B and headquartered in Bristol, TN 2009 Revenues1 $1.8 B Commercial operations in Bridgewater, NJ 2009 EBITDA $555 M R&D facilities in C
Slide 9: Sum-of-the-Parts Value
Sum-of-the-Parts Value Potential Additional Synergies (not included in the valuation ) Initial Projected Cost Synergies Net Cash and Other Securities Base Business Pipeline Valuation Diversification Branded Prescription • Multiple Business Segments with Products Existing In-line Value Marketed • Pip
Slide 10: Cost Synergies
Cost Synergies ● Initial projected cost synergies from operating expenses of at least $200 million ● Majority of savings projected to come from Corporate G&A, Pharmaceutical and Animal Health marketing and promotion ● 50% of savings anticipated to be realized in year 1, 75% in year 2 and 100% in yea
Slide 11: Key Takeaways
Key Takeaways ● King’s assets map directly to Pfizer’s current business unit structure and offer the following: Diversification of revenues and business mix Enhanced presence in the strategically important pain therapeutic area Potential upside driven by future substantiation of novel abuse-de