Abbott, Amgen Are On the Prowl with Small Deals


Acquisitions and deals are always a risky business, especially in the pharmaceuticals industry. Just today, Elan Corp. (ELN) and Gilead Sciences (GILD) discovered the price of such deals when both halted drug trials on compounds developed by other pharmaceutical firms. Due to safety concerns, Elan partially halted an Alzheimer's drug trial in partnership with Transition Therapeutics Inc. (TTHI). And due to efficacy issues, Gilead halted a trial of a blood pressure drug it bought with its $2.5 billion acquisition of Myogen.
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In that light, it's interesting to hear of two new deals today. Amgen Inc. (AMGN) has entered an agreement with Array BioPharma Inc. (ARRY) to develop a potential treatment for type 2 diabetes, while Abbott Laboratories (ABT) agreed to acquire Starlims Technologies Ltd. (LIMS) for about $123 million.