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BRISTOL, Tenn.—King Pharmaceuticals, Inc. (NYSE:KG) announced today the Company's acquisition of the rights to three branded prescription pharmaceutical products from Aventis. The products include the rights in the United States, Puerto Rico, and Canada to Intal® (cromolyn sodium) and Tilade® (nedocromil sodium), inhaled anti-inflammatory agents for the management of asthma, and worldwide rights, excluding Japan, to Synercid® (dalfopristin and quinupristin), an injectable antibiotic indicated for treatment of vancomycin-resistant Enterococcal faecium (“VREF”) and treatment of complicated skin and skin structure infections. Total upfront cash consideration paid by King for the three branded pharmaceutical products equals $199.5 million. Net sales of Intal® and Tilade® in the United States, Puerto Rico, and Canada and net sales of Synercid® worldwide totaled approximately $66 million during the twelve months ending September 30, 2002.

Anybody have any idea to how much upside is available from 66 million on these drugs? It seems like a great deal and the perfect example of why cash strong pharmaceuticals have an advantage.

Even if KG foregoes the installments and pays up front, that will leave them with 700 mill in free cash.

Derek - long on KG
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