King is highlighting itself as well-positioned for growth as an independent company following termination of Mylan's proposed acquisition of the firm.

Changes King has made in its commercial operations and business development organization in the past year will help prepare it for future growth, the company said Feb. 28.

"As a result of management's progress, the company is confident that it is repositioned for renewed growth," King said.

Although King is unlikely to pursue another major merger or acquisition at this time, it is interested in acquiring products with strong exclusivity that could benefit from the company's current marketing focus and operations.

Mylan and King jointly announced the end of their marriage plans on Feb. 27, one day before the deadline on which either company could walk away if the deal was not completed.

"The companies have mutually agreed to terminate the agreement pursuant to which Mylan was to acquire King," a joint press release said. "Following discussions, the companies were not able to agree upon terms for a revised transaction."

Mylan announced plans for an all-stock acquisition of King in July; at that time, the deal was valued at $4 bil.

However, the proposed merger was beset by problems, including initial negative reaction by Wall Street, staunch opposition to the deal by Mylan investor Carl Icahn, and King's recent restatement of its financial results dating back to 2002.

King's announcement in December that it would have to restate significantly threw the merger's completion on its original terms in doubt, although both companies left the door open to possible renegotiation of the agreement (¹ Also see "King Inventory Work-Down Plan Goal Is 1.5 Months Of On-Hand Product" - Pink Sheet, 22 February, 2005.).

Most recently, FDA extended the user fee deadline for Mylan's nebivolol NDA by three months to May 31; the beta blocker was expected to be a key component of the combined companies' portfolio (² Also see "Mylan's Nebivolol NDA User Fee Date Extended To May 31" - Pink Sheet, 25 February, 2005.).

Mylan said it will hold an investor call on March 10 "to provide updated financial guidance for future periods, as well as an update on nebivolol."

The company previously has delayed a nebivolol "road show" in light of the uncertainty surrounding the King deal.

For its part, King said it will "thoroughly present and discuss the company's strategic plan for renewed growth as an independent company" during a conference call following the filing of its third quarter 10-Q and 2004 10-K. Those documents are expected to be filed with the Securities & Exchange Commission by March 16, the company said.

King points to its decision, announced in May, to relocate its sales and marketing operations to New Jersey as a key move in boosting its commercial operations (³ Also see "King Moves Sales & Marketing To N.J.; Andrzejewski Will Head Commercial Operations" - Pink Sheet, 28 May, 2004.).

"The company has optimized the size of its sales force and improved compensation to attract talent and reward top performers," King said. "Additionally, the company has strengthened its marketing, market research and administrative structure."

"With its significantly enhanced commercial operations capability, King plans to maximize the potential of the company's currently marketed products as a revenue-generating platform to fund product development and external business development."

King said it has added "new talent" in the business development area and adopted "rigorous new acquisition criteria," which will help strengthen the company's portfolio.

"By sensibly adding products with significant growth potential and divesting underperforming assets, King expects to improve the company's long-term prospects and build value for its shareholders."

Other "significant accomplishments" highlighted by King include: reprioritizing the R&D portfolio "with an enhanced focus on projects with the greatest probability to deliver long-term value"; implementing processes and policies to enhance financial controls; and reducing wholesaler inventory levels through implementation of inventory management agreements.

King announced Feb. 22 that it would seek to further reduce inventory levels to 1.5 months of product on-hand by the end of March.

- Sue Sutter

Mylan's Pursuit Of King Ends; King Says It's Ready To Go It Alone

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