Abbot can bring muscle power to Enanta's brain power.

Implications: Abbott Laboratories, one of the largest pharmaceutical companies in the world, enters into an agreement with a privately-held biotech firm, Enanta, to develop and commercialize Hepatitis C virus (HCV) protease inhibitors (PIs). HCV PIs would be a new drug class in the treatment of HCV.

Analysis: Hepatitis C is a leading cause of cirrhosis of the liver, leading to liver failure and/or liver cancer. Currently available treatment regimens consisting of pegylated interferon and ribavirin are difficult to tolerate, and may be effective only 50% of the time, depending on the HCV genotype. New treat modalities are desperately needed.

Abbott Laboratories has a proven track record in developing PIs in the HIV treatment market (Kaletra). Enanta brings new compounds to the pipeline for Abbott. Whichever pharmaceutical company can bring an HCV PI to market first will reap a goldmine for all involved. Whichever product is second or third, will have to show they are better than the first to be approved. Abbott has the muscle and experience to get the job done. Only clinical trials will determine if this deal is worthwhile.