2008 approval seen for Abbott cholesterol drug

NEW YORK, Nov 5 (Reuters) - Analysts on Monday said they expect a combination cholesterol treatment being developed by Abbott Laboratories (ABT.N) to be approved in the United States next year based on positive data presented on the drug at a major heart meeting.

The drug, Simcor, combines Abbott's long-acting niacin pill, Niaspan, with simvastatin, a generic version of Merck & Co's (MRK.N) popular Zocor cholesterol medicine. Niacin raises levels of "good" HDL cholesterol, while simvastatin lowers "bad" LDL cholesterol.

"Data from the Simcor pivotal trials should support commercialization in the mid-2008 timeframe," Morgan Stanley analyst Glenn Reicin said in a research note.

Reicin forecast annual Simcor sales of $350 million by 2011.

JPMorgan analyst Michael Weinstein was even more bullish about Simcor's prospects following presentation of the pivotal data on Sunday at the American Heart Association's scientific sessions in Orlando, Florida.

"We forecast Simcor sales of $400 million in 2010," said Weinstein, who expects U.S. approval in the first half of 2008.

Simcor met the primary goals of both trials presented in Orlando. The combination drug produced significantly better reductions in non-HDL cholesterol as well as significant improvements in HDL and triglyceride levels compared with simvastatin alone, researchers said.

"We view these data as strong, which should allow Simcor to be competitive," Reicin said.

The most common side effect seen with the Abbott drug was flushing, an uncomfortable burning sensation in the face and neck commonly associated with niacin.

Six percent of patients on the combination drug discontinued therapy due to flushing compared with 0.8 percent with simvastatin alone, researchers said.

Merck is currently developing a cholesterol medicine that combines a long-acting niacin with a specific anti-flushing agent and another that adds Zocor to that combination.

Abbott shares were off 26 cents at $53.79 on the New York Stock Exchange. (Reporting by Bill Berkrot, editing by Maureen Bavdek)