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EXHIBIT 99
COMPANY PRESS RELEASE
AMERICAN HOME PRODUCTS AND KING PHARMACEUTICALS
FINALIZE CO-PROMOTION ARRANGEMENT FOR ALTACE(R)
- Wyeth-Ayerst Division Will Co-Promote Cardiovascular Product that has
Clinically-Proven Survival Benefit -
- Terms Include Transfer of Rights from AHP to King for Three Other Branded
Pharmaceutical Products -
MADISON, N.J. and BRISTOL, Tenn., June 23 -- American Home Products Corporation
(NYSE: AHP) and King Pharmaceuticals, Inc. (NYSE: KG) announced today that they
have entered into a co-promotion agreement to market King's product Altace(R)
(ramipril), an Angiotensin Converting Enzyme ("ACE") inhibitor, in the United
States and Puerto Rico. Under the terms of the transaction, AHP also agreed to
divest to King, for an undisclosed sum, its rights in the U.S. and Puerto Rico
to Nordette(R) (an oral contraceptive) and two other undisclosed products.
Altace(R) will be jointly marketed by Wyeth- Ayerst Laboratories (AHP's
pharmaceutical division) and King.
On May 1, 2000, the FDA's Cardio-Renal Drugs Advisory Committee unanimously
recommended the approval of Altace(R) for additional indications after new data
from the landmark HOPE Study (Heart Outcomes Prevention Evaluation) was
submitted that demonstrated significant reduction of myocardial infarction,
stroke, and death from cardiovascular causes in patients at risk for such
cardiovascular events. The Advisory Committee recommendation followed King's
submission of a sNDA on January 18, 2000, for such new indications.
"The combination of Wyeth's long experience in cardiovascular health and a
product with clinically-proven benefits like Altace(R) should provide a new
weapon for patients to fight cardiovascular disease. Our allocation of
approximately 1,000 sales reps to market and promote Altace(R) will provide
physicians with the best opportunity to learn about the therapeutic benefits of
using this product," says Bernard Poussot, President, Wyeth-Ayerst Global
Pharmaceuticals. "This agreement with King is another example of our commitment
to bringing life-saving therapies to patients who need them."
Altace(R) is currently indicated for use in the treatment of hypertension and
congestive heart failure after a patient suffers from myocardial infarction. The
product was launched in the U.S. in 1991 by Hoechst Marion Roussel ("HMR"), and
King acquired HMR's rights to Altace(R) in the U.S. and Puerto Rico in 1998.
Last year, U.S. net sales of Altace(R) totaled $122.4 million.
The New England Journal of Medicine ("NEJM") published the HOPE Study data on
January 20, 2000. The study was conducted in 267 centers in 19 countries over a
four and one-half year period -- including more than 9,500 patients with a
history of coronary heart disease, peripheral vascular disease, stroke or
individuals with diabetes or a high risk for cardiovascular problems. The study
examined, in part, the effects of Altace(r) in reducing cardiovascular events
among a broad range of high-risk patients.
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Subject to the terms of the co-promotion agreement, King will pay AHP an annual
fee based on a percentage of annual net sales. Additionally, AHP purchased
$75-million of King registered common stock at a pre-determined market price and
paid to King an additional $25-million in cash upon execution of the
co-promotion agreement. AHP will pay an additional $50-million to King upon the
U.S. Food and Drug Administration's ("FDA's") final approval of potential new
indications for Altace(R) based on a supplemental new drug application ("sNDA")
previously filed by King with the FDA. Additional details of the arrangement
will be disclosed in King's related 8-K filing with the Securities and Exchange
Commission.
John M. Gregory, Chairman and CEO of King, says, "We are extremely pleased to
enter into this co-promotion agreement with Wyeth-Ayerst. This agreement will
provide a greatly expanded marketing resource commitment for our largest product
Altace(R). Moreover, the marketing alliance dramatically enhances the future
growth potential of Altace(r) following the FDA's Advisory Committee's
recommendation for new and unique indications for the product and the
anticipated approval of such indications by the FDA."
As with all ACE inhibitors, the common adverse effects associated with Altace(R)
include: headache, dizziness, fatigue, dry cough and rare cases of angioedema
(swelling of skin). It is contraindicated in patients who are hypersensitive to
the product or have a history of angioedema related to previous treatment with
an ACE inhibitor. When used in pregnancy during the second and third trimesters,
ACE inhibitors can cause injury and even death to the developing fetus. When
pregnancy is detected, use of all ACE inhibitors should be immediately
discontinued.
Wyeth-Ayerst Laboratories, a division of American Home Products Corporation
(NYSE: AHP), is a major research-oriented pharmaceutical company with leading
products in the areas of women's health care, cardiovascular therapies, central
nervous system drugs, anti-inflammatory agents, infectious disease, hemophilia,
oncology, vaccines, and generic pharmaceuticals. American Home Products
Corporation is one of the world's largest research-based pharmaceutical and
health care products companies. It is a leader in the discovery, development,
manufacturing and marketing of prescription drugs and over-the-counter
medications. It is also a leader in vaccines, biotechnology, and animal health
care.
King, headquartered in Bristol, Tennessee, is a vertically integrated
pharmaceutical company that manufactures, markets, and sells primarily branded
prescription pharmaceutical products. King seeks to capitalize on niche
opportunities in the pharmaceutical industry created by cost containment
initiatives and consolidation among large global pharmaceutical companies.
King's strategy is to acquire branded pharmaceutical products and to increase
their sales by focused promotion and marketing and through product life cycle
management.
This release may contain forward-looking statements that reflect both companies'
management's current views of future events and operations. These
forward-looking statements involve certain significant risks and uncertainties,
and actual results may differ materially from the forward- looking statements.
Some important factors which may cause results to differ include: dependence on
King's and American Home Product's ability to successfully market Altace(R)
under the co-promotion agreement, the unpredictability of the duration and
results of the FDA's review of the supplemental new drug application, the high
cost and uncertainty of research, clinical trials, and other development
activities involving pharmaceutical products, significant leverage and debt
service requirements of King, dependence on King's ability to continue to
acquire branded products, dependence on sales of King's products, and management
of King's growth and integration of its acquisitions. Other important factors
that may cause actual results to differ materially from
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the forward-looking statements are discussed in various sections of King's and
American Home Product's latest Form 10-K and other filings with the Securities
and Exchange Commission. King does not undertake to publicly update or revise
any of its forward-looking statements even if experience or future changes show
that the indicated results or events will not be realized.
