This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

For Abbott, Diversity Remains Paramount

Abbott's dealmaking produced Humira, which accounts for 15% of corporate revenue and is Abbott's biggest product. Second-quarter sales of $1.1 billion jumped 48% vs. the year-ago quarter. Humira was an experimental compound when Abbott acquired it via its $6.9 billion purchase of Knoll Pharmaceuticals from Germany's BASF in 2001.

Humira reached the U.S. market in 2003 as an injectable treatment for rheumatoid arthritis. It has since gained approval from the Food and Drug Administration for psoriasis, the gastrointestinal ailment Crohn's disease and three other diseases.

Abbott expanded its heart-disease business thanks to the 2006 acquisition of Kos Pharmaceuticals. At the time, Abbott only had TriCor, which lowers triglyceride levels. Triglyceride is a form of fat which, like bad cholesterol, increases the risk of heart disease.

Abbott paid $3.7 billion for Kos and got three cholesterol drugs, including Niaspan, which is an extended-release version of the vitamin niacin. Niaspan lowers bad cholesterol and raises good cholesterol. So does Advicor, which combines Niaspan and generic Mevacor, a bad-cholesterol drug from Merck (MRK - Get Report).

When Abbott bought Kos, Merck was testing a drug that combines extended-release niacin and a compound designed to produce fewer side effects than Niaspan and Advicor. Abbott's drugs cause flushing, or the reddening of the skin especially around the face and neck.

However, in April 2008, the FDA rejected the Merck drug called Cordaptive. The agency wanted to see more safety and efficacy data, telling Merck to reapply after results of an ongoing clinical trial are released in early 2013. Merck is talking to the FDA about providing data that would enable an earlier review.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ABT $48.32 0.00%
BSX $18.34 0.00%
GE $26.80 0.00%
JNJ $101.08 0.00%
MDT $77.61 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs