Kos/Biovail: How a Mid-Cap Can Win in Primary Care

In May 2005 Kos Pharmaceuticals took over three of Biovail Corp's hypertension drugs plus most of its associated sales force, paying just 1.4 times 2004 sales-or roughly a fifth of what Biovail had paid for the same products less than five years ago. The deal draws attention to why the two mid-cap companies--similarly sized, and, until recently, with a similar business model--have fared so differently in primary care.

Specialty pharmas have largely built their businesses through buying under-marketed niche drugs at a discount and then promoting them in a targeted fashion to their specialist audiences. Kos Pharmaceuticals Inc. and Biovail Corp. both expanded the model to include primary care products. Biovail failed; Kos—at least so far—has succeeded, indeed profiting from Biovail's failure. Last month Kos took over three of Biovail's hypertension drugs plus most of its associated sales force, paying the struggling Canadian group just 1.4 times 2004 sales—or roughly a fifth of what Biovail had paid for the same products less than five years ago. [See Deal] "The deal's a steal," remarks SG Cowen & Co. managing director and analyst Ian Sanderson.

More importantly, though, it draws attention to why the two companies—similarly sized, and, until recently, with a similar business model—have...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Business Strategy

Late-Stage GLP-1 Drug Trials Outside The Cardiometabolic Space

 
• By 

A look at Novo Nordisk, Eli Lilly and other companies' late-stage clinical studies of GLP-1 drugs in indications ranging from neurodegeneration to oncology, and alcoholic liver disease to autoimmune conditions.

Rising Leaders 2025: Metsera’s Whit Bernard’s Musical Path To Biotech Leadership

 
• By 

Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.

AI In Drug Discovery: The Patent Implications

 
• By 

A Q&A with DeAnn Smith, partner and co-chair of the Patent Trial and Appeal Board Proceedings Practice Group at law firm Foley Hoag.

Is Advanced AI Revolutionizing Sales Enablement In Pharma?

 
• By 

Advanced AI is revolutionizing sales enablement by addressing training gaps and performance challenges. Used correctly, it can help to bridge the sales-marketing divide, accelerate ramp-up times and provide managers with data-driven insights.

More from In Vivo

AI In Health Delivery: Patients Most Confident When HCPs Are In Charge

 
• By 

Annual survey of patients and professionals shows how attitudes to health system transformation are evolving and what stakeholders are demanding as acceptance of AI tools accelerates.

Medtech Innovators Court London-Based Investors At BioWales 2025

 
• By 

BioWales in London 2025 showcased the efforts healthtech innovators are making to meet investors on their own turf, illustrating changing attitudes and evolving needs.

Rising Leaders 2025: Metsera’s Whit Bernard’s Musical Path To Biotech Leadership

 
• By 

Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.