ABBOTT TO ACQUIRE KOS

Abbott is looking to extend its reach into the $20 billion lipid management market with the purchase of specialty drug company Kos Pharmaceuticals.

Abbott will purchase Kos, which develops drugs to treat chronic cardiovascular, metabolic and respiratory diseases, for $78 per share, with a total transaction value of $3.7 billion, the company announced Nov. 6.

The lipid management market is the single largest pharmaceutical segment, according to the release. Kos' two lead products are Niaspan (niacin extended-release tablets), an extended-release niacin product that raises high-density lipoprotein cholesterol, or good cholesterol, levels, and Advicor (niacin extended-release/ lovastatin tablets), a Niaspan/lovastatin combination product that treats patients with multiple lipid disorders.

Kos also has several products in the pipeline, including an asthma medication in late-stage development and an inhaled insulin product.

The transaction is subject to customary closing conditions, including antitrust clearance under the Hart-Scott Rodino Act and acquisition of a majority of the outstanding Kos Pharmaceuticals shares in the tender offer.