| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| King Pharmaceuticals, Inc. |
| 501 Fifth Street, Bristol, TN 37620 * (423) 989-8001 |
| The company is an integrated pharmaceutical company that manufactures, markets and sells branded and generic prescription pharmaceutical products. |
| Manager | Tier | Phone |
| CS First Boston | Lead Manager | (212) 325-2000 |
| Hambrecht & Quist Incorporated | Co-manager | (415) 439-3626 |
| NASNTL: | KING | Manufacturing: | SIC 2834 | |
| Type of Shares: | Common Shares | Filing Date: | 10/24/97 | |
| U.S. Shares: | 6,250,000 | Offer Date: | 6/24/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $16.50 - $19.50 | |
| Primary Shares: | 6,250,000 | Offer Price: | $14.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.98 | |
| Offering Amount: | $112,500,000 | Selling: | $0.59 | |
| Expenses: | $1,825,000 | Reallowance: | $0.10 | |
| Post-IPO Shares: | 32,000,000 | |||
| Employees: | 312 |
| Issuer's Law Firm: | Baker, Donelson, Bearman & Caldwell |
| Bank's Law Firm: | Shearman & Sterling |
| Registrar/Transfer Agent: | Union Planters National Bank |
| Auditor: | Coopers & Lybrand |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 12/31/96 | 9/30/97 | 9/30/96 | 9/30/97 | ||
| Revenue: | $15.46 | $33.82 | $11.31 | Assets: | $74.25 |
| Net Income: | -$0.24 | $4.55 | -$0.70 | Curr Assets: | $17.72 |
| EPS: | -$0.02 | $0.18 | -$0.06 | Liabilities: | $46.44 |
| Prior EPS: | $0.79 | Curr Liab: | $17.64 | ||
| Cash Flow/Oper: | -$5.97 | $5.30 | -$6.44 | Equity: | $27.81 |
| Cash Flow/Fin: | -$0.78 | $25.83 | $1.40 | Cash: | $0.04 |
| Cash Flow/Inv: | -$2.43 | -$32.48 | $0.01 | Working Cap: | $0.08 |
| Competition |
| The Company competes with other pharmaceutical companies for product and product line acquisitions. These competitors include Jones Medical Industries, Inc., Dura Pharmaceuticals, Inc., Medicis Pharmaceutical Corporation, Forest Laboratories, Inc., Watson Pharmaceuticals, Inc. and other companies which also acquire branded pharmaceutical product lines from other pharmaceutical companies. Additionally, since the Company's products are generally established and commonly sold, they are subject to competition from products with similar qualities. The Company's branded pharmaceutical products may be subject to competition from alternate therapies during the period of patent protection and thereafter from generic equivalents. The manufacturers of generic products typically do not bear the related research and development costs and consequently are able to offer such products at considerably lower prices than the branded equivalents. There are, however, a number of factors which enable products to remain profitable once patent protection has ceased. These include the establishment of a strong brand image with the prescriber or the consumer, supported by the development of a broader range of alternative formulations than the manufacturers of generic products typically supply. As is the case for the pharmaceutical industry in general, the introduction of new products and processes by competitors may affect pricing levels or result in product replacement for existing products, and there can be no assurance that any of the Company's products may not become outmoded, notwithstanding patent or trademark protection. In addition, increasing governmental and other pressure towards the dispensing of generic pharmaceutical products in substitution for branded pharmaceutical products may increase competition for products no longer covered by patents. The Company's branded pharmaceutical products compete primarily with products of other pharmaceutical companies, including large global pharmaceutical companies. These competitors have substantially greater financial, technical, research and other resources and larger, more established marketing, sales, distribution and service organizations than the Company. Moreover, such competitors may offer broader product lines and have greater name recognition than the Company. There can be no assurance that the Company's competitors will not acquire branded pharmaceutical products which the Company desires or will not develop or market products that are more effective or commercially attractive than the Company's current or future products or that would render the Company's products obsolete. There can be no assurance that the Company will have the financial resources, technical expertise or marketing, distribution or support capabilities to compete successfully. |
| Business Plan |
| The Company's strategy is also expected to increase its selling, general and administrative expenses due to the hiring of additional sales representatives and increased sampling, advertising and other marketing costs as a result of more focused marketing efforts. In accordance with its focus on branded pharmaceutical products, the Company expects that, over time, its contract manufacturing and generic pharmaceutical and companion animal health product lines will become a smaller percentage of revenues. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for the acquisition of additional branded products, repayment of certain indebtedness and for general corporate purposes including investments in facilities to accommodate new products acquired, development of branded product line extensions and generic products and expansion of sales force.. |
| Name of Shareholder | % Owned Before | % Owned After |
| John M. Gregory | 0.31 | 0.25 |
| The United Company | 0.19 | 0.15 |
| Joseph R. Gregory | 0.11 | 0.09 |
| Officer Name | Title | Age |
| John M. Gregory | Chairman of the Board of Directors and Chief Executive Officer | 44 |
| Brian G. Shrader | Chief Financial Officer | 29 |
| R. Henry Richards, M.D. | Executive Vice President , Medical Affairs | 52 |
| Terri D. White-Gregory | Executive Vice President, Business Development | 34 |
| Ronald C. Siegfried | Executive Vice President, Development | 55 |
| John A. A. Bellamy | Executive Vice President, Legal Affairs and General Counsel | 35 |
| J. Fred Pruden | Executive Vice President, Manufacturing | 51 |
| James E. Gregory | Executive Vice President, Production/Administration | 46 |
| John P. McCoy | Executive Vice President, Quality | 49 |
| Jefferson J. Gregory | President and Chief Operating Officer of King Pharmaceuticals, Inc. and Director | 42 |
| Joseph R. Gregory | President and Chief Operating Officer of Monarch Pharmaecuticals and Director | 43 |
| Norman T. Miller | Senior Directo, Regulatory Affairs (Compliance) | 64 |
| Thomas K. Rogers, III | Senior Director, Regulatory Affairs (Applications) | 44 |
| Michael R. Hilton | Vice President, Sales and Marketing | 50 |