News

Posted On: 11/06/2006

Abbott to Acquire Kos Pharma for $3.7 Billion

PharmaManufacturing.com

Abbott Laboratories (Abbott Park, Ill.) and Kos Pharmaceuticals, Inc. (Cranbury, N.J.) on Nov. 6 announced a definitive agreement for Abbott to acquire Kos for $78 per share in cash, for a total transaction value of $3.7 billion. Kos is a specialty pharmaceutical company that develops and markets proprietary medications for the treatment of chronic cardiovascular, metabolic and respiratory diseases. The company has a growing presence in the $20 billion lipid management market.

"Kos Pharmaceuticals is an excellent strategic fit for Abbott, both scientifically and commercially," said Miles D. White, chairman and chief executive officer, Abbott. "This acquisition expands Abbott's presence in the lipid management market and will provide several on-market and late-stage pipeline products. Kos also complements our existing commercial and research and development expertise, and increases our R&D spending capacity."

"Since being founded in 1988 . . . Kos has pioneered the HDL therapy area in the United States and firmly established Niaspan and Advicor as successful and highly differentiated therapies," said Adrian Adams, president and chief executive officer, Kos Pharmaceuticals. "This is an opportune time to become a part of another fast-growing organization like Abbott with the shared experience and additional resources to help capture the full value of our highly differentiated cholesterol franchise and our growing R&D pipeline."

Kos Pharmaceuticals' Portfolio

The lipid management market is the single largest pharmaceutical segment and continues to grow at double-digit rates. Kos Pharmaceuticals' two lead products are Niaspan (niacin extended-release tablets), an extended-release niacin product that raises HDL, or good cholesterol levels; and Advicor(niacin extended-release/lovastatin tablets), a Niaspan/lovastatin combination product that treats patients with multiple lipid disorders.

A new Niaspan caplet formulation with a range of dosages is currently under FDA review. Kos is also in late-stage development with Simcor, a fixed-dose combination of Niaspan and simvastatin (generic Zocor) to treat lipid disorders, which is expected to be submitted for regulatory review in the U.S. in the first half of 2007. These on-market cholesterol products and development opportunities will join Abbott's lipid management portfolio, which includes on-market TriCor (fenofibrate tablets); a next-generation fenofibrate, ABT-335; and a TriCor/Crestor development program with AstraZeneca announced in July 2006.

Kos Pharmaceuticals is also developing a number of other products, including an asthma medication and an inhaled insulin. Flutiform, in-licensed from SkyePharma, is currently in late-stage development for adult and adolescent asthma and will provide an expanded presence for Abbott in the $10 billion asthma market, in addition to Kos' currently marketed asthma product. Kos is also developing an inhaled insulin product, which will complement Abbott's significant presence in the diabetes market — with its leading glucose monitoring and diabetes nutritionals businesses.