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Abbott acquires KOS- Implications for the diabetes sector

This morning Abbott (NYSE:ABT) said it will acquire Kos Pharmaceuticals (NASDAQ:KOSP) for $3.7 billion. After closing on Friday at $50.09, Abbott’s offer of $78 per share represents a hefty 56% premium for Kos shareholders. While the Street is looking at this deal as Abbott’s move into the lucrative cholesterol market, the deal also has implications for the diabetes sector as well. Kos is one of the many companies with...

CVS-Caremark – Implications for the diabetes market

Yesterday CVS Corp. (NYSE:CVS) and Caremark Rx (NYSE:CMX) announced a merger agreement that could have far reaching implications for companies in the diabetes sector. Although the merger is not a done deal and could take up to a year to complete, should it become a reality its potential impact on the diabetes sector is far reaching. It is well known that one of the fastest growing segments of the pharmacy...

MannKind Reports – Is the inhaled insulin category in a death spiral?

This morning MannKind (NASDAQ:MNKD) reported third quarter earnings and the news wasn’t good. Based on the comments made during the company’s call there are host of issues facing not just MannKind but the entire category. 1. 1. Money or more appropriately lack thereof. While it appears the company has sufficient capital for the near term, long term is more problematic. While the company continues to stress...

Is the Street finally waking up on Exubera?

According to a report from DataMonitor sales of Exubera, the inhaled insulin from Pfizer (NYSE:PFE) will fall well short of previous estimates and stabilize at $207 million by 2015. It appears that the Street is finally waking up to what Diabetic Investor has been saying for years, Exubera is no more than a niche product and will not reach the blockbuster sales estimates of many analysts. At one point in...

Sanofi Reports

This morning Sanofi-Aventis (NYSE:SNY) reported third quarter results and the verdict on their diabetes franchise was mixed. Lantus® the world’s number one selling insulin continues to do very well, whereas concerns remain over reimbursement for Acomplia®. Although not yet approved by the Food and Drug Administration (FDA), the drug has been approved in Britain and Germany. The company plans on releasing results from their Serenade study at the International...

October Issue and Emisphere Commentary

It’s only appropriate on the day we send out the October issue which covers the coming battle in the type 2 oral medication market, that Emisphere Technologies (NASDAQ:EMIS) released results of phase 2 study for the their oral insulin project. While Diabetic Investor agrees with Emisphere that insulin in a pill form has the potential to be a blockbuster product, there is little else we agree on. While the...

Novo Reports

This morning Novo Nordisk (NYSE:NVO) reported results for the first nine months of 2006. While the Street will concentrate on how exchange rates will affect future earnings, one thing is clear Novo is expanding their dominance as the worldwide leader in diabetes. By all measures, in nearly every market around the globe Novo is the number one insulin company. The real question for Novo is whether they can maintain...

GSK Reports

This morning GlaxoSmithKline (NYSE:GSK) reported third quarter results and not unexpectedly there was a great deal of attention on their Avandia franchise and the potential impact of DPP4’s being introduced into the market. On the Avandia franchise the company reported worldwide growth of 11% for the quarter, in the US the growth was just 6%. During the quarter the company had several supply issues with Avandamet and was unable to...

Glucose Monitoring – Are we in danger of going backwards?

Last week at the Canadian Diabetes Association and the Canadian Society of Endocrinology and Metabolism meeting in Toronto, there was a debate over the need for daily glucose monitoring. This may seem strange given the volumes of evidence that show patients who monitor their glucose levels on a regular basis achieve better control and avoid or delay the onset of the many complications associated with diabetes. Yet there is a...

Novartis and Lilly Report

This morning Novartis (NYSE:NVS) and Eli Lilly (NYSE:LLY) reported third quarter results. Not surprisingly during the Novartis call there was a great deal of interest in their DPP-4 Galvus which should receive FDA sometime in the very near future. With Januvia, Merck’s (NYSE:MRK) DPP-4 receiving approval this past Tuesday, the key concern among the analysts was how Novartis planned on marketing Galvus. Based on the available data Galvus and...