ADVERTISEMENT
2 /3 FREE ARTICLES LEFT THIS MONTH Remaining
Chemistry matters. Join us to get the news you need.

If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)

ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.

ENJOY UNLIMITED ACCES TO C&EN

Business

Abbott to Buy Kos

$3.7 billion acquisition is targeted at the lipid management market

by Michael McCoy
November 13, 2006 | APPEARED IN VOLUME 84, ISSUE 46

[+]Enlarge
Credit: Abbott
Compound screening at Abbott's Abbott Park, Ill., labs.
8446notw3_abbott.jpg
Credit: Abbott
Compound screening at Abbott's Abbott Park, Ill., labs.

Abbott Laboratories has agreed to acquire the specialty drugmaker Kos Pharmaceuticals for $3.7 billion. Kos, based in Cranbury, N.J., sells products designed to manage levels of "good" and "bad" cholesterol.

Abbott CEO Miles D. White says the purchase will expand his firm's presence in the field known as lipid management, a $20 billion-per-year market dominated by Pfizer's statin drug Lipitor.

Kos's two main products are Niaspan and Advicor. Niaspan, launched in 1997, is an extended-release form of the vitamin niacin, which raises levels of high-density lipoprotein (HDL), or good cholesterol. Four-year-old Advicor combines Niaspan with lovastatin, the first in the statin class of drugs, which lower low-density lipoprotein, or bad cholesterol.

These and other products brought in sales last year of $752 million, a 51% increase over 2004 sales. Kos's drug pipeline holds a new Niaspan formula, now under FDA review, that reduces the facial flushing associated with niacin. Also in development is Simcor, a combination of Niaspan and simvastatin, the active ingredient in Merck's statin drug, Zocor. Kos expects to submit Simcor for FDA review next year.

With the purchase, Abbott is looking to build on its success with the lipid management drug TriCor, a Solvay product that Abbott markets in the U.S.; sales last year were $927 million. In July, Abbott and AstraZeneca announced plans to develop a new combination product that joins AstraZeneca's statin drug, Crestor, with either TriCor or ABT-335, an HDL-raising drug that Abbott is developing.

Robert Hazlett, a stock analyst with BMO Capital Markets, is bullish on the Abbott-Kos combination despite stiff competition from the likes of Merck and Pfizer. "We believe Abbott's success with TriCor bodes well for its potential with the Niaspan franchise," he wrote in a note to clients.

X

Article:

This article has been sent to the following recipient:

Leave A Comment

*Required to comment