SOURCE: King Pharmaceuticals, Inc.

King Pharmaceuticals, Inc.

March 17, 2010 11:08 ET

King Pharmaceuticals Announces US Department of Justice Settlement

BRISTOL, TN--(Marketwire - March 17, 2010) -  King Pharmaceuticals, Inc. (NYSE: KG) today announced that its subsidiaries, Alpharma Inc. and Alpharma Pharmaceuticals LLC ("Alpharma"), have finalized a civil settlement with the United States Department of Justice and the Office of the United States Attorney for the District of Maryland resolving a previously disclosed investigation into Alpharma's sales and marketing activities. As part of the overall resolution of the investigation, Alpharma also agreed to enter into separate civil settlement agreements with states that decide to participate in the settlement.

The investigation related to Alpharma's sales and marketing of the pharmaceutical product Kadian® (morphine sulfate extended-release) Capsules prior to Alpharma's December 2008 acquisition by King. King divested Kadian at the time of the Alpharma acquisition. 

The settlement does not constitute an admission by Alpharma or King of any liability or wrongdoing. Under the terms of the settlement agreement, Alpharma has agreed to pay federal and state authorities $42.5 million plus accrued interest, the full amount of which has been reserved. No criminal charges were brought against Alpharma as part of this resolution. Alpharma agreed to settle this matter to avoid the time, uncertainty and expense of litigation. 

About King Pharmaceuticals, Inc.
King, headquartered in Bristol, Tennessee, is a vertically integrated branded pharmaceutical company. King, an S&P 500 Index company, seeks to capitalize on opportunities in the pharmaceutical industry through the development, including through in-licensing arrangements and acquisitions, of novel branded prescription pharmaceutical products and technologies that complement the Company's focus in specialty-driven markets, particularly neuroscience and hospital. King's wholly-owned subsidiary, Alpharma, Inc., is also a leader in the development, registration, manufacture and marketing of pharmaceutical products for food producing animals.

EXECUTIVE OFFICES
KING PHARMACEUTICALS, INC.
501 FIFTH STREET, BRISTOL, TENNESSEE 37620

Contact Information

  • Contact:
    Jack Howarth, Vice President, Investor Relations
    908-429-8350