Abbott Laboratories’ $3.7 billion purchase of Kos Pharmaceuticals is
likely to close in the next few days after the firm announced that it had
acquired 91.4% of outstanding Kos shares after a tender offer expired.
Abbott noted that around 35 million shares were acquired and the remaining Kos shareholders will receive the same $78 cash price per share paid in the tender offer.
It is just over a month since Abbott made its bid for Kos in order to
strengthen its position in the cholesterol-modulating market. The latter’s
best-selling products are Niaspan (niacin) and Advicor (niacin plus
lovastatin), which raise HDL or ‘good’ cholesterol. Abbott’s own
cholesterol-lowerer Tricor (fenofibrate) is still selling well, but is
facing a patent challenge from generic manufacturer Teva.
Hepatitis C deal with Exanta
Abbott also announced that it has signed a worldwide alliance with small
US firm Enanta Pharmaceuticals to develop and commercialise hepatitis C
virus NS3 and NS3/4A protease inhibitors.
Under the terms of the agreement, Enanta will receive an upfront payment
of $57 million, which includes a cash payment and an equity investment,
and if all clinical and regulatory milestones are met, up to $250 million
will find its way into the firm’s bank account.
Enanta will also receive double-digit royalties if any products make it to
market. Meanwhile, it also holds an option to fund 40% of development and sales and promotion costs in exchange for a 40% profit share in the USA on medicines from the alliance that get approval.
