Abbott Laboratories to acquire cholesterol drug maker Kos

Abbott Laboratories Inc. said Monday that it would acquire Kos Pharmaceuticals Inc. in a $3.7-billion deal that would make it the leader in the hot field of drugs to boost “good” HDL cholesterol.

Abbott, based in suburban Chicago, said it would pay Kos shareholders $78 a share in cash, marking a 56% premium over Kos’ closing price of $50.09 on Friday.

Abbott said the deal would cost $3.7 billion after it received Kos’ cash holdings of $400 million.

Kos’ main products, Niaspan and Advicor, incorporate prescription forms of the nutrient niacin, which boosts HDL.

Sales of the products have surged, pushing up Kos’ share price, amid increasing evidence that low levels of heart-protective HDL may be a bigger cause of heart disease than high levels of artery-clogging “bad” LDL cholesterol.

Abbott said it expected the deal to hurt earnings per share in 2007 by 2 cents to 3 cents and be neutral to positive for earnings in 2008.

“Abbott shareholders over the long haul will be pleasantly pleased in what they’ve acquired through the Kos deal,” predicted Robert Hazlett, an analyst with BMO Capital Markets.

Shares of Cranbury, N.J.-based Kos Pharmaceuticals jumped $26.97, or 54%, to a 52-week high of $77.06 on Monday.

Abbott Laboratories shares slipped 17 cents to $47.47.