King Pharmaceuticals
...olving credit line to pay for the deal and drew down part of its $254 million cash reserve. Although king had high hopes for its new drug acquisitions, the four drugs had combined sales of $69.2 million, compared with Bristol-Myersfs sales of more than $18 billion. The company will have earn $333 million in 2002, up 38% from 2001, on sales of $1.2 billion even though its beginning was humbled. By not having to spend a large amount of money on research and long-term clinical trials, King cut much of risk and nets margins to 27%, compared with 18% for other pharmaceutical companies. All of drugs the company owns are come from companies such as Bristol-Myers, Johnson & Johnson and Glaxo-SmithKline. Kings had its eyes on the point that drug firms have been merging, and combined companies want to shed drugs that plateau at $350 million in order to focus their sales force on bigger drugs. The antihypertensive Altace, Kingfs top seller, will make $500 million this year, up from $92 million at the time bought from Aventis in 1998. However, its rivals have moved on to research and develop their drugs to make greater profit while King focuses on marketing. Forest Laboratories expanded its cost on research and development to $158 million, 10% of its revenue in 2002, and Medicis Pharmaceutical spent 7% even though King just increased its budget to $35 million in 2002, 3% of revenue. Moreover, even though King has still focused on creating buying opportunities Forest who once dealt in selling cast-offs have moved on and generates 98% of its $1.6 billion in revenue from its own route, and Medicis has a diversified strategy. It is because buying is way to start a company; however, a research strategy is significantly. King has had particular success with Altace, an antihypertensive treatment. Sales of Altace have enabled the company to aggressively repay debt because for the year 2001, revenues grew about 41% to $872 million, net earnings rose more than 46 percent to $240 million, and earning per share increased in excess of 39 percent to $1.03. Moreover, net sales of Altace in 2001 grew to $2...