Abbott cancels abuse-resistant Vicodin, fires sales staff

Abbott Laboratories scrapped plans to introduce an abuse-resistant pain pill this year and fired 200 sales representatives that were added in anticipation of the drug's marketing clearance, people familiar with the matter said.

The drugmaker said in October that the drug, an extended release form of Vicodin, failed to gain U.S. Food and Drug Administration approval. The Libertyville Township-based company hasn't released details of the so-called complete response letter from the FDA.

Vicodin is in a class of powerful pain medications that have come under scrutiny by U.S. regulators and doctors because of an increase in abuse rates and a concern the drugs may lose their effectiveness when given over a long period of time. Abbott said its extended release form, Vicodin CR, would be the first in the hydrocodone class of narcotics to provide relief over 12 hours. Other hydrocodone drugs sell for less than $1 a dose and must be taken every four to six hours.

"We're looking at a path to bring Vicodin CR to market but do not anticipate a launch in 2009," said Laureen Cassidy, a spokeswoman for Abbott. "Based on the delay in the market availability of Vicodin CR, Abbott is reducing the number of staff supporting our pain-care business."

The move may benefit King Pharmaceuticals Inc., which bought Alpharma Inc. for $1.3 billion in December, gaining one of a half-dozen companies racing to sell the first long-acting painkillers modified to deter potentially fatal misuse. By buying Alpharma and investing in its own pain drugs, King has positioned itself to lead a market that Ian Sanderson, an analyst at Cowen & Co., has predicted may reach $3 billion by 2015.

Purdue Pharma LP, maker of OxyContin, is also working to develop painkillers that are resistant to abuse.