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news.Abbott Laboratories is to cease the distribution of three low profit margin drugs that it currently co-distributes with Boehringer Ingelheim, including the popular arthritis drug Mobic. The move will allow Abbott to redeploy its resources to further promote its more profitable offerings.
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Abbott will now stop its co-distribution of the painkilling arthritis drug, Mobic, and the enlarged prostate drug, Flomax, at the beginning of 2006. It will continue to co-distribute Micardis, a treatment for high blood pressure, until the end of March next year.
Although Abbott will no longer distribute the drugs, it will continue to earn a commission from Boehringer Ingelheim’s sales of the drugs in the US.
While Mobic represents a low profit margin to Abbott, it has benefited over the first half of this year, as it has moved into the gap in the market left behind by the withdrawal of Merck’s now infamous arthritis drug Vioxx. Also, Boehringer recently released positive results of a study into the prostate drug, Flomax, which suggested that the drug was more effective than its rival terazosin hydrochloride.