Mylan retreats from King merger
Mylan's vice chairman and CEO, Robert Coury, explained that King's restating of its financial results for 2002, 2003 and the first half of 2004, violates the merger agreement. "While we are monitoring and reviewing these accounting issues and a number of other matters concerning King, in light of timing issues, we believe that it is highly unlikely that the parties would be able to consummate the merger contemplated by our merger agreement with King by February 28, 2005, which is the date in the merger agreement after which generally either Mylan or King may terminate the agreement," Coury stated. "While our continued study may lead to a renegotiation of the existing merger agreement, there can be no assurance that a revised agreement will be reached or that any transaction will occur," he continued. Mylan and King announced the $4 billion merger deal in July 2004, which was hailed as being central to helping Mylan enter the patent-protected drugs market, particularly due to King's flagship product, Altace, a treatment for hypertension.