) --


(PFE) - Get Report

is buying

King Pharmaceuticals


for $3.6 billion in cash to bolster its presence in the pain relief market, the company said Tuesday.

The deal values King at $14.25 a share, or a 40% premium over King's closing price of $10.15 a share Monday. Pfizer said the acquisition will have no material impact on 2010 earnings but will add approximately 2 cents a share to the drugmaker's estimated 2011 and 2012 earnings.

King is a specialty pharmaceutical company that specializes in pain drugs, including Embeda, an opioid designed with features that make it resistant to abuse and misuse. King earned $1.10 a share in 2009 on total revenue of $1.78 billion but is expected to earn 68 cents a share on $1.48 billion this year, according to Thomson Reuters.

Pfizer said the King acquisition allows the company to expand its current pain offerings, which include Lyrica and Celebrex.

Pfizer shares were down 5 cents to $17.33 in premarket trading Tuesday.

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--Written by Adam Feuerstein in Boston.

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