New York-based drug major Pfizer is to acquire King Pharmaceuticals in a $3.6bn deal.

The deal will strengthen the company’s portfolio before the expiry of key patents next year, including its key cholesterol fighter Lipitor, and provide a bigger share in the prescription pain relief market.

Pfizer will fund the deal, priced at a 40% premium of King’s closing price on Monday, entirely through existing cash.

The company expects to make savings of more than $200m from the transaction.

Pfizer will use existing and developmental King’s medications to expand its pain treatment portfolio, which already includes Lyrica and Celebrex.

Pfizer acquired Wyeth for $67bn earlier this year.

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By GlobalData