Shares of King Pharmaceuticals, Inc. soared nearly 40% as Pfizer announced it will buy it for $3.6 billion in cash. Pfizer is the world's largest pharmaceutical company by revenue and will pay $14.25 per share for King Pharma.
The deal brings great benefits to Pfizer as it gains products such as Avinza and EpiPen.
King has about 2,600 employees and Pfizer has 116,500 employees as of end of 2009. Some say the deal may lead to job cuts in order to reduce costs.
Pfizer's stock is little changed on the news.
