This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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).

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs