Important note: Information in this article was accurate in 1999. The state of the art may have changed since the publication date.
The Chicago Tribune - June 4, 1999
Bruce Japsen, Tribune Staff Writer
Currently, Abbott has one way to combat HIV, but the venture with Triangle Pharmaceuticals Inc. allows the North Chicago-based company to sell all the necessary ingredients in so-called AIDS cocktails, combinations of drugs credited with a dramatic decline in the number of deaths from AIDS.
"This positions us in all segments of the HIV market," said Arthur Higgins, senior vice president of Abbott's pharmaceutical operations. "This agreement strengthens our position worldwide by giving us access to every segment of pharmaceutical intervention in HIV."
In all, Abbott and Durham, N.C.-based Triangle will co-promote six antiviral products worldwide designed to treat HIV, the virus that causes AIDS, as well as hepatitis B.
Several of the Abbott and Triangle products are still in late-stage clinical trials, but Abbott expects enough Food and Drug Administration approvals in time to meet patient needs within the next two years.
Because HIV is such a complicated disease to treat, several different drugs are needed to stop the spread of the virus. New AIDS drugs are especially important, since many patients have been known to become immune to existing cocktails.
"HIV has two enzymes in it, so by attacking both enzymes simultaneously, it's already shown in other studies to be the best way to stop the virus in the body," said Dr. David Barry, chairman and chief executive at Triangle.
About 33 million people worldwide have HIV, including more than 650,000 Americans, the U.S. Centers for Disease Control and Prevention estimates. About 350 million people have Hepatitis B. By reaching more of those patients, Abbott expects, its revenues from AIDS products will rise from the current "$250 million to $300 million" in Norvir sales to more than $1.5 billion in five years, Higgins said.
Analysts say the alliance could benefit Abbott's future research projects and studies to combat the deadly disease.
"If a company has a list of drugs, it's in position to evaluate these drugs in combination more easily," said Dr. Frank Palella, an infectious diseases specialist at Northwestern Memorial Hospital. "The advantage is more to the company from a marketing point of view, but in-house, they can conduct the kind of studies necessary to evaluate the drugs."
The deal calls for Abbott to buy 6.57 million shares of Triangle common stock at $18 a share for a total equity investment of $118 million, representing 17 percent of the firm's equity. Abbott will also contribute $31.7 million in research funding, and another $185 million in milestone payments contingent on product development and future commercialization costs.
The alliance expands Abbott's AIDS product portfolio from protease inhibitors Norvir and ABT-378, which is in final-stage clinical trials, to include Triangle's three "nucleoside reverse transcriptase inhibitors" and one "non-nucleoside reverse transcriptase inhibitor," medicines commonly used for treatment of HIV and hepatitis B.
In the United States, Abbott and Triangle will co-promote the Triangle products and Abbott's two protease inhibitors. Outside the country. Abbott will have exclusive sales and marketing rights for all four Triangle antivirals.
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