King Pharmaceuticals, Inc announced total revenue for the second quarter ended June 30, 2010

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King Pharmaceuticals, Inc.announced that total revenue for the second quarter ended June 30, 2010 equaled $371 million compared to $445 million in the second quarter of 2009. The Company reported net income of $18.0 million and diluted earnings per share of $0.07 during the second quarter of 2010, compared to a net income of $37.9 million and diluted earnings per share of $0.15 in the same period of the prior year. Excluding certain special items and recurring non-GAAP adjustments, adjusted net earnings equaled $43.1 million and adjusted diluted earnings per share equaled $0.17 during the second quarter ended June 30, 2010, compared to adjusted net earnings of $79.9 million and adjusted diluted earnings per share of $0.32 in the second quarter of 2009. Brian A. Markison, Chairman, President and Chief Executive Officer of King, stated, “I’m pleased to report that in the second quarter Embeda® prescriptions showed continued growth while Flector® Patch prescriptions showed improvement. In June, Flector®  recorded its highest number of total prescriptions since December 2009, and it grew five percent sequentially over the first quarter of this year.” He continued, “In addition to the progress we are making on the commercial side of the business, our products in development continue to track well against our previously stated timelines. Both Remoxy® and Acurox® remain on track for FDA submission, with Remoxy® scheduled for the end of this year and Acurox®  scheduled for the first quarter of 2011. Finally, later this year we expect to begin enrollment in the phase three safety and efficacy studies for Oxycodone NT, a product specifically designed to resist certain common methods of misuse and abuse. We are very optimistic about the potential for success of our development programs, and look forward to working closely with the Food and Drug Administration toward approval of these novel and important formulations.”

Joseph Squicciarino, King’s Chief Financial Officer, commented, “Second quarter financial results were in line with our revised expectations. The Company reported cash flow from operations of $51 million, and we continue to believe that we will be able to generate approximately $300 million for the full year.” He continued, “King’s overall liquidity profile remains strong as evidenced by the recent establishment of a new $500 million dollar, five year revolving credit facility. In addition, we remain confident in our ability to deliver against our previously stated financial guidance for 2010.”

Net revenue from branded pharmaceuticals totaled $162 million for the second quarter of 2010, compared to $275 million for the same period of the prior year. Branded pharmaceuticals revenue for the quarter did not include approximately $26 million in royalties recorded for the sales of an authorized SKELAXIN® generic.

Net sales of SKELAXIN® (metaxalone) totaled $5 million during the second quarter of 2010, compared to $102 million for the same period of the prior year. Early in the second quarter of 2010, two generic forms of SKELAXIN® were launched.

THROMBIN-JMI® (thrombin, topical, bovine, USP) net sales totaled $37 million during the second quarter of 2010, compared to $49 million in the second quarter of 2009.

Net sales of AVINZA® (morphine sulfate extended release) totaled $25 million during the second quarter of 2010, compared to $29 million in the second quarter of 2009.

Net sales of FLECTOR® PATCH (diclofenac epolamine topical patch) 1.3% totaled $35 million during the second quarter of 2010, compared to $39 million in the second quarter of 2009.

Net sales of EMBEDA® (morphine sulfate and naltrexone hydrochloride) Extended Release Capsules totaled $15 million during the second quarter of 2010, up $6 million sequentially from the first quarter of 2010. Wholesaler inventory levels now stand at approximately 3 weeks.

King’s Meridian Auto-Injector business contributed revenue totaling $83 million during the second quarter of 2010, compared to $72 million in the second quarter of 2009. The increase was primarily due to price increases, higher unit sales and royalties from the next generation EpiPen® auto-injector partially offset by lower sales to government agencies.

Net revenue from the Alpharma Animal Health business totaled $85 million during the second quarter of 2010, compared to $83 million in the second quarter of 2009.

As of June 30, 2010, the Company’s cash and cash equivalents totaled approximately $573 million.

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, LLC, is also a leader in the development, registration, manufacture and marketing of pharmaceutical products for food producing animals.

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