Monday, November 06, 2006

Abbott feel flush and buy Kos for $3.7 billion

Abbott Laboratories said on Monday it will acquire Kos Pharmaceuticals Inc. for $3.7 billion to boost its presence in the lucrative cholesterol-treatment market.

The agreement provides for Abbott to acquire Kos for $78 per share in cash, the companies said in a joint statement. Kos shares closed on Friday at $50.09, making the premium on Abbott's offer nearly 56 percent.

Kos' main products -- Niaspan and Advicor -- involve versions of niacin, which helps boost levels of good cholesterol, or HDL.

Kos is also in late-stage development with Simcor, which combines Niaspan and a generic version of Merck's Zocor, a widely used treatment that cuts bad cholesterol. Kos' other development projects include an asthma medication and an inhaled form of insulin.

NY Times/Reuters

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