9 November 2006

Abbott Labs deals for Kos

Abbott Laboratories will pay $3.7 billion to acquire Cranbury, N.J.-based Kos Pharmaceuticals.

Kos had revenues of $751.7 million last year.

Kos’ main product is Niaspan, which raises levels of “good,” or HDL, cholesterol. The company also makes Advicor, a Niaspan combination drug that treats patients with multiple lipid disorders.

Kos also has several late-stage drugs in development, including treatments for asthma and diabetes.

“This acquisition expands Abbott’s presence in the lipid management market and will provide several on-market and late-stage pipeline products,” said Miles White, Abbott’s chairman and chief executive. “Kos also complements our existing commercial and research and development expertise and increases our R&D spending capacity.”

Abbott’s own cholesterol products include TriCor, which it markets in the U.S. through an agreement with Solvay Pharmaceuticals.

Abbott expects the transaction to depress earnings by 2 cents to 3 cents a share in 2007, not affect profit in 2008, and add to earnings thereafter.

The deal is subject to approval by Kos shareholders and federal regulators. Company officials said they hope to close on the deal in several months.

For related information, go to www.isa.org/productivity.