Abbott, AstraZeneca in Joint Effort

NEW YORK: Abbott Laboratories and AstraZeneca have decided to team up to co-develop and market a new combination cholesterol medicine, using Abbott's TriCor or another Abbott drug and AstraZeneca's Crestor medicines.

The treatment will target good cholesterol, bad cholesterol and triglycerides in one pill.

The deal follows one struck by Schering-Plough and Merck, where the two joined forces to develop Vytorin, a combination cholesterol medicine that features Merck's drug Zocor and Schering Plough's Zetia. Vytorin generated $ 1 billion in sales last year.

Combination therapy makes up 15 percent of the $ 17 billion cholesterol market, and is the fastest-growing segment.
Abbott stock closed on Wednesday at $ 43.61, up 3 cents; American depositary receipts of AstraZeneca fell $ 1.17 to close at $ 58.90.

"I think it's an indication that the major pharmaceutical companies all want to participate in the very large and fast-growing cholesterol-control market, and in particular, they want to try to duplicate the success Schering-Plough and Merck have had with Vytorin," said Morningstar Inc. analyst Tom D'Amore.

According to the American Heart Association, more than 38 million Americans have complex lipid disease, a serious cholesterol-related illness, and could benefit from the combination therapy.

As per the agreement, Abbott and AstraZeneca will initiate two programs, one that will feature a pill with Abbott's TriCor cholesterol drug combined with AstraZeneca's Crestor drug. The other will feature a combination pill with Crestor and ABT-335, an Abbott drug that is in late-stage clinical trials.

One of the programs will be selected for final development and commercialization based upon data from initial studies, the companies said.

TriCor and ABT-335 are part of a class of medicines called fibrates. TriCor raises good cholesterol and reduces triglycerides, a form of fat or lipid obtained through food. It also reduces bad cholesterol. Crestor reduces bad cholesterol.

The deal also involves the companies to share development costs and profits. Abbott will conduct the clinical trials and be responsible for regulatory registration of the new combination pill. AstraZeneca will hold the new drug application.

The companies hope to seek approval for the medicine in 2009.

"The combination brings together two major brands, with TriCor and Crestor in a single pill to comprehensively treat bad cholesterol, good cholesterol and triglycerides," said Abbott spokeswoman Ilke Arici.

TriCor generated $ 927 million in sales for Abbott last year. Crestor generated $ 1.26 billion in sales for AstraZeneca.