Generic drug giant Mylan Laboratories, Canonsburg, Pa., will acquire King Pharmaceuticals, Bristol, Tenn., in a deal worth about $4 billion. The acquisition combines the No. 1 domestic generic-pharmaceutical company with a leading branded-drug company, uniting Mylan's manufacturing strengths with King's marketing expertise, officials said. King markets the blockbuster Altace, a leading ACE inhibitor for high blood pressure. For the 12 months ended March 31, the combined company would have had about $3 billion in revenues, $650 million in operating cash flow and nearly 6,000 employees. The deal, subject to regulatory approval, is expected to close by year-end.
Meanwhile, Boston Scientific Corp. reported a significant jump in revenue and profit for the second quarter, despite the recent recall of 85,000 drug-eluting Taxus stents. Announcement of the company's financial results had been delayed a week because of the recall earlier this month. Regardless, Boston Scientific's net income almost tripled to $313 million, or 36 cents per share, from $114 million, or 13 cents per share, in the year-ago period. Revenue grew more than 71% to $1.5 billion. For the six months, the company earned $507 million, or 59 cents per share, on revenue of $2.5 billion. That was up about 140% from income of $211 million, or 25 cents per share, on revenue of $1.7 billion in the year-ago period. Boston Scientific officials said the U.S. conversion rate from bare-metal stents to drug-eluting stents has exceeded 80%. -- by Cinda Becker