King Pharmaceuticals Inc.: PharmaVitae Profile

King Pharmaceuticals Inc.: PharmaVitae Profile
CHAPTER 1 ABOUT THIS PROFILE 3

Executive summary 3

Quarterly news update 3

Company introduction 3

Company sales 3

Company financials 3

Key products and competitors 4

Data sourcing 4

Sales data 4

Analyst consensus 4

CHAPTER 2 EXECUTIVE SUMMARY 5

Key findings 5

Prescription pharmaceutical sales performance, 2001-13 6

Financial performance, 2001-13 7

King Pharmaceuticals: PharmaVitae forecasts at a glance 8

Strategic insight 9

Challenging times ahead as key products face generics 9

Alpharma acquisition has significantly improved King's outlook 10

Combination would create a key player in pain market 11

SWOT analysis 13

Strengths 13

Weaknesses 14

Opportunities 15

Threats 15

CHAPTER 3 QUARTERLY NEWS UPDATE 20

Quarterly sales update, Q408 20

Product developments 22

Deals and alliances 23

Product deals 23

Technology deals 24

M&A activity 25

Company announcements 26

Future product milestones 26

CHAPTER 4 COMPANY INTRODUCTION 27

Key findings 27

Background 28

Key corporate developments 28

M&A history 29

Early M&A following success of Altace 29

Elan deal creates life after Altace 30

Mylan acquisition failed to materialize 30

Alpharma acquisition completed in December 2008 31

Current corporate structure 32

Pharmaceuticals business unit structure 33

CHAPTER 5 COMPANY SALES 34

Key findings 34

Prescription pharmaceutical sales and growth rate analysis, 2001-13 35

Product analysis 37

Product analysis, 2001-07 37

Product analysis, 2007-13 42

Therapy area analysis 46

Therapy area analysis, 2001-07 47

Therapy area analysis, 2001-07 47

Therapy area analysis, 2007-13 49

Therapy area focus, 2001-13 51

Geographic analysis 53

Geographic analysis, 2001-07 54

Geographic analysis, 2007-13 56

Geographic focus, 2001-13 58

Launch/core/expiry analysis 59

Explanation of launch/core/expiry analysis 59

Launch analysis, 2007-13 60

Core analysis, 2007-13 64

Expiry analysis, 2007-13 65

Launch/core/expiry configuration, 2007-13 67

Molecule type analysis 68

Molecule type analysis, 2001-07 69

Molecule type analysis, 2001-07 69

Molecule type analysis, 2007-13 70

Externalization analysis 72

Externalization analysis, 2001-07 73

Externalization analysis, 2007-13 76

CHAPTER 6 COMPANY FINANCIALS 78

Key findings 78

Reconciliation between PharmaVitae-formatted prescription pharma sales and company-reported total sales, 2001-07 79

Financial statements, 2001-07 81

Profit and loss account, 2001-07 81

Balance sheet, 2001-07 83

Operating costs and profit analysis 86

Operating costs and profit analysis, 2001-07 87

Operating cost ratio and profit margin analysis, 2001-07 89

Operating cost ratio and profit margin analysis, 2007-13 91

Operating costs and profit analysis, 2007-13 94

Return on capital employed analysis 96

Capital employed analysis, 2001-07 97

Return on capital employed (RoCE) analysis, 2001-07 99

CHAPTER 7 KEY PRODUCTS AND COMPETITORS 101

Key findings 101

Overview 102

Central Nervous System 103

Remoxy 103

Overview 103

Sales forecast 104

Acurox 107

Overview 107

Sales forecast 108

Embeda 110

Overview 110

Sales forecast 111

Flector patch 113

Overview 113

Sales forecast 114

Avinza 115

Overview 115

Sales forecast 116

Immunology and inflammation 118

EpiPen 118

Overview 118

Sales forecast 119

Hematology 121

Thrombin-JMI 121

Overview 121

Sales forecast 122

Cardiovascular 124

Altace 124

Overview 124

Sales forecast 125

CorVue 127

Overview 127

Sales forecast 128

Skelaxin 129

Overview 129

Sales forecast 130

CHAPTER 8 APPENDIX 132

R&D pipeline 132

References 133

Abbreviations 134

List of Tables

Table 1: King Pharmaceuticals - PharmaVitae forecasts at a glance 8

Table 2: Alpharma portfolio, 2007-13 11

Table 3: King quarterly global sales update ($m), Q4 2008 20

Table 4: King Pharmaceuticals key product developments, 2008 22

Table 5: King Pharmaceuticals product deals and alliances, 2008 23

Table 6: King Pharmaceuticals technology deals and alliances, 2008 24

Table 7: King Pharmaceuticals M&A activity, 2008 25

Table 8: King Pharmaceuticals company announcements, 2008 26

Table 9: King Pharmaceuticals future product milestones, 2008-10 26

Table 10: King Pharmaceuticals product portfolio overview ($m), 2001-07 37

Table 11: King Pharmaceuticals product portfolio overview ($m), 2007-13 42

Table 12: King Pharmaceuticals product portfolio overview ($m), 2001-07 47

Table 13: King Pharmaceuticals product portfolio overview ($m), 2007-13 49

Table 14: King Pharmaceuticals portfolio overview by geographic region ($m), 2001-07 54

Table 15: King Pharmaceuticals portfolio overview by geographic region ($m), 2007-13 56

Table 16: King Pharmaceuticals launch portfolio overview ($m), 2007-13 60

Table 17: King Pharmaceuticals core portfolio overview ($m), 2007-13 64

Table 18: King Pharmaceuticals expiry portfolio overview ($m), 2007-13 65

Table 19: King Pharmaceuticals portfolio overview by molecule type ($m), 2001-07 69

Table 20: King Pharmaceuticals product portfolio overview by molecule type ($m), 2007-13 70

Table 21: King Pharmaceuticals product portfolio overview by source ($m), 2001-07 73

Table 22: King Pharmaceuticals product portfolio overview by source ($m), 2007-13 76

Table 23: Total King sales by business unit ($m), 2001-07 79

Table 24: King Pharmaceuticals profit and loss account ($m), 2001-07 81

Table 25: King Pharmaceuticals balance sheet ($m), 2001-07 83

Table 26: King Pharmaceuticals operating revenue/cost analysis ($m), 2001-07 87

Table 27: King Pharmaceuticals operating cost ratio analysis (% of total revenues), 2001-07 89

Table 28: King Pharmaceuticals operating cost ratio analysis (% of total revenues), 2007-13 91

Table 29: King Pharmaceuticals operating revenue/cost analysis ($m), 2007-13 94

Table 30: King Pharmaceuticals capital employed ($m), 2001-07 97

Table 31: King Pharmaceuticals EBIT return on capital employed ($m), 2001-07 99

Table 32: King Pharmaceuticals EBIT pre-tax return/Capital employed driver analysis, 2001-07 99

Table 33: Key products overview 102

Table 34: Remoxy: overview 103

Table 35: Remoxy: sales forecast ($m), 2007-13 104

Table 36: Acurox: overview 107

Table 37: Acurox: sales forecast ($m), 2007-13 108

Table 38: Acurox: overview 110

Table 39: Embeda: sales forecast ($m), 2007-13 111

Table 40: Flector patch: overview 113

Table 41: Flector patch: sales forecast ($m), 2007-13 114

Table 42: Avinza: overview 115

Table 43: Avinza: sales forecast ($m), 2007-13 116

Table 44: EpiPen: overview 118

Table 45: EpiPen: sales forecast ($m), 2007-13 119

Table 46: Thrombin-JMI: overview 121

Table 47: Thrombin-JMI: sales forecast ($m), 2007-13 122

Table 48: Altace: overview 124

Table 49: Altace: sales forecast ($m), 2007-13 125

Table 50: CorVue: overview 127

Table 51: CorVue: sales forecast ($m), 2007-13 128

Table 52: Skelaxin: overview 129

Table 53: Skelaxin: sales forecast ($m), 2007-13 130

Table 54: King Pharmaceuticals's R&D pipeline (Phase I-registration) 132

List of Figures

Figure 1: King Pharmaceuticals prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 6

Figure 2: King Pharmaceuticals's financial performance ($m), 2001-13 7

Figure 3: King total Rx revenue, growth drivers/resistors by portfolio ($m), 2001-13 10

Figure 4: King total Rx revenue by source ($m), 2001-13 12

Figure 5: King Pharmaceuticals SWOT analysis 13

Figure 6: Top 10 product sales ($m), forecast vs. actual, 2008 21

Figure 7: Current corporate structure, 2001-07 (% of total revenue) 32

Figure 8: Pharmaceuticals business structure, 2001-07 (% of Rx revenue) 33

Figure 9: King Pharmaceuticals prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 35

Figure 10: King Pharmaceuticals key sales growth driver & resistors ($m), 2001-07 38

Figure 11: King Pharmaceuticals key sales growth drivers & resistors ($m), 2007-13 43

Figure 12: King Pharmaceuticals prescription pharmaceutical sales by therapy area ($m), 2001-13 46

Figure 13: King Pharmaceuticals prescription pharma sales by therapy area (% of total), 2001-13 51

Figure 14: King Pharmaceuticals prescription pharmaceutical sales by geographic region ($m), 2001-13 53

Figure 15: King Pharmaceuticals growth drivers and resistors by geographic region ($m), 2001-07 54

Figure 16: King Pharmaceuticals drivers and resistors by geographic region ($m), 2007-13 56

Figure 17: King Pharmaceuticals prescription pharmaceutical sales by geographic region (% of total), 2001-13 58

Figure 18: King Pharmaceuticals launch/core/expiry configuration ($m), 2007-13 67

Figure 19: King Pharmaceuticals prescription pharmaceutical sales by molecule type ($m), 2001-13 68

Figure 20: King Pharmaceuticals growth drivers and resistors by molecule type ($m), 2007-13 71

Figure 21: King Pharmaceuticals prescription pharmaceutical sales by source ($m), 2001-13 72

Figure 22: King Pharmaceuticals growth drivers and resistors by source ($m), 2001-07 74

Figure 23: King Pharmaceuticals growth drivers and resistors by source ($m), 2007-13 77

Figure 24: King Pharmaceuticals operating revenue/cost analysis ($m), 2001-13 86

Figure 25: King Pharmaceuticals operating cost ratio analysis (% of total revenues), 2001-13 93

Figure 26: King Pharmaceuticals return on capital employed, EBIT margin and capital turnover, 2001-07 96

Figure 27: Return on capital employed formula 100