QDIS Blog

Well as I’ve said previously the merger mania continues and now Abbott Labs is in the mix. They are going to purchase Kos Pharmaceuticals for $3.7 billion in cash!

Abbott Labs buys Kos Pharma for $3.7B - Yahoo! News

This is a 56% premium over the Kos stock price on Friday Nov 3. Abbott purchased Kos for basically one produce, Niaspan, which is one of a very few drugs that raise HDL (good) cholesterol. It should be pointed out that this is simply an extended release form of niacin.

There are other niacin forms available over the counter that also increase good cholesterol. I know because my doctor recommended I take it and I have been for over a year now. Niacin use to be used quite a bit before the statin drugs were available and it does a good job but has the side effect of causing flushing. Flushing is a redness of the head and neck and can be itchy and uncomfortable. I know because I purchased some cheaper versions of niacin and had flushing with some of the capsules. I think the quality control on that particular brand wasn’t very good. I switched back to my usual brand of non-flushing formula of niacin and haven’t had any problems. I should say though that I haven’t had my cholesterol checked since being on niacin and so can’t say yet whether or not it is working for me.

Back to the merger. I personally think Abbott may be paying to much for Kos based on their pipeline of currently marketed drugs. The major area for Kos has been cholesterol therapies and that is a very crowded area with many blockbuster statins either now generic or soon to be generic. Kos’s other drug is Advicor and is a combination of Niaspan and lovastatin. I know Abbott wants to get into the cholesterol drug business put I feel this may be too much to pay.

Technorati Tags: Abbott Labs, good cholesterol, Kos Pharmaceuticals, pharma M&A, pharmaceutical deals, HDL cholesterol, puppy

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