Pharma BD Deal Intelligence

Abbott Laboratories / Kos Pharmaceuticals Inc.

2006 · Acquisition/Merger · $3.7B · Complete

WRONG BY 38 POINTS

Niaspan rode a marketing-driven prescription boom to ~$1.1B in US sales, then the clinical rationale collapsed (AIM-HIGH, 2011) and the FDA ultimately pulled the niacin-combo products from the market in 2016 — a franchise built on a thesis that didn't survive its own trial data.

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The coverage arc

Nov 06, 2006 Abbott announcement (reprint via Reliable Plant) Bullish

Abbott expects the transaction to be $0.02 to $0.03 dilutive to ongoing earnings per share in 2007, neutral to accretive in 2008 and building to significant…

Nov 06, 2006 NBC News (Associated Press) Neutral

Abbott's $78-per-share cash offer represented a premium of nearly 56 percent over Kos's Friday close of $50.09; Kos's main products Niaspan and Advicor are…

Nov 20, 2006 SEC filing — Kos SC 14D9 Bullish

Kos board recommended Abbott's $78/share tender offer; financial advisors confirmed fairness based on Niaspan franchise economics, Simcor pipeline value and…

Source summaries from our enrichment pipeline; follow links for originals.

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Cardiovascular/lipid management; Niaspan, Advicor; $78/share

Did it work? Outcome assessment

Niaspan rode a marketing-driven prescription boom to ~$1.1B in US sales, then the clinical rationale collapsed (AIM-HIGH, 2011) and the FDA ultimately pulled the niacin-combo products from the market in 2016 — a franchise built on a thesis that didn't survive its own trial data.

Strategic verdict
Failed to Achieve

Key facts

Related deals — scored

DealYearValueOutcome
Abbott Laboratories / Kos Pharmaceuticals Inc. (this deal)2006$3.7B33
Abbott Laboratories / Knoll Pharmaceutical Company (BASF Pharma)2001$6.9B100
Abbott Laboratories / Knoll Pharmaceuticals (BASF Pharma)2000$6.9B95
Abbott Laboratories / Alere Inc.2016$5.8B95
Abbott Laboratories / St. Jude Medical2016$30.5B82
Abbott Laboratories / TheraSense Inc.2004$1.2B81
Abbott Laboratories / Vysis Inc.2001$355M79

Compare all 7 side-by-side →

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