Abbott Finds Lipid Lowering Partner With Kos Acquisition
This article was originally published in The Pink Sheet Daily
Executive Summary
Candidates would be competitors to Pfizer's Lipitor/torcetrapib combination.
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Abbott's proposed $3.7 bil. acquisition of Cranbury, N.J.-based Kos Pharmaceuticals will double the number of lipid lowering candidates in its pipeline from two to four. Abbott's existing cardio pipeline includes a combination of TriCor (fenofibrate) and AstraZeneca's Crestor (rosuvastatin), and a follow-on fenofibrate, the pre-clinical ABT-335, which is also being co-developed with AstraZeneca (1 (Also see "Abbott/AstraZeneca Come Together Over Statin/Fibrate Combo" - Pink Sheet, 5 Jul, 2006.)). Kos brings a cardiovascular, metabolic and respiratory diseases focus to Abbott. The company currently markets Niaspan (niacin extended-release) and Advicor , a combination of Niaspan and lovastatin (Merck's Mevacor and generics). Its lipid lowering pipeline includes the Phase III Simcor , a combination of niacin and simvastatin (Merck's Zocor and generics). Kos is also developing Niaspan CF, a 1,000 mg caplet formulation with an improved flushing profile over the currently marketed Niaspan. Kos has announced plans to beef up its sales force to 1,000 in anticipation of 2007 launches of the new formulation as well as the asthma product icatibant (2 (Also see "Kos Bolsters Internal Sales Force To 1,000 Ahead Of New Launches" - Pink Sheet, 9 Aug, 2006.)). Abbott told "The Pink Sheet" DAILY that the acquisition makes sense because each of the products is tailored toward different types of patients. For example, for a patient who has had previous cardiovascular issues, a TriCor/lovastatin combination would work best. However, a lower-risk patient with no prior CV problems might be better suited for Simcor, the company said. The merged company's combination candidates would likely directly compete with the combination Pfizer is developing of its blockbuster statin Lipitor (atorvastatin) and its experimental torcetrapib (3 (Also see "Niaspan/Statin Combinations Improve Lipid Control, Study Shows" - Pink Sheet, 20 Jun, 2006.)). A formal date for closing the merger, which was announced Nov. 6, has not been set, according to Abbott. However, the firm will make a tender offer of $78 for all outstanding shares of Kos, which closed at $77.06 on the NASDAQ Nov. 6. Although Abbott has a strong presence in diabetes in its diagnostic business, it has no pipeline drug candidates in the category. Kos' pipeline includes a Phase II inhaled insulin candidate. However, with a likely filing in 2010, Kos' inhaled insulin is behind Pfizer's currently marketed Exubera, Lilly/Alkermes' candidate AIR and Mannkind's candidate, which has an expected filing in 2008 (4 (Also see "Nastech/Amylin’s Exenatide Nasal Spray Deal Could Be Shot In The Arm For Lilly" - Pink Sheet, 26 Jun, 2006.)). Kos also has two asthma products in development. Flutiform (fluticasone/formoterol), in-licensed from SkyePharma, is in Phase III with an expected NDA filing in 2007, and the Phase III icatibant in collaboration with Germany-based Jerini. -Jonathan M. Block ([email protected]) |