Abbott Laboratories

Patients should feel confident that the drugs and medical devices prescribed by their doctor are what is best for their health, not something influenced, even subconsciously, by a nice meal or a free trip to a sunny resort that the doctor enjoyed. That, in essence, is what is behind legislation expected to be introduced in the General Assembly this week. A final version of the proposal is still in the works, but the idea is to restore public confidence by greatly regulating the financial interactions between drug companies and medical device makers and doctors, a necessary step in the wake of highly publicized gifts to Dr. Mark G. Midei, the Baltimore cardiologist facing accusations of implanting hundreds of unnecessary stents.

MedImmune Inc. yesterday won government go-ahead to market its new drug for a potentially life-threatening respiratory disease in premature infants and young children.Synagis, which was approved for sale by the U.S. Food and Drug Administration, was developed to prevent serious respiratory syncytial virus, or RSV, a disease that causes pneumonia and bronchitis and is especially serious for premature infants.According to MedImmune, 4,500 children in the United States die of RSV every year and 85,000 are hospitalized for it."

Do you want steadily rising income? "Despite unfavorable conditions for investors who want rising dividends, all is not bleak," says Income Digest. The article includes these stocks under "Dividend-Increase Candidates": Abbott Laboratories, Allstate Corp., Bank of New York Inc., Exxon Mobil Corp., Hershey Foods Corp. and Jefferson Pilot Corp. "For years, investors shunned dividend-paying stocks such as banks and utilities," says Individual Investor. "But lately these `workhorses' gained popularity.

IF YOU WANT to save on taxes, consider "tax-swapping" your bonds."Since January, interest rates have moved up," says Robert Reeves, a municipal bond specialist. "This decline sent bond prices lower, but you can turn that decline to your advantage."Sell bonds with losses and `swap' them for bonds of comparable quality. You establish a tax loss, preserve your principal and maintain or increase your income. Municipal bonds are well-suited for tax swapping.""Depressed drug stocks are good buying opportunities," says S&P Outlook, Oct. 6. "These companies' strong patent- protected drug portfolios and new pipelines enable them to withstand near-term uncertainties: Abbott Laboratories, Bristol-Myers Squibb Co., Forest Labs Inc., Pfizer Inc., Pharmacia & Upjohn Inc., SmithKline Beecham PLC and Warner Lambert Co."

ABBOTT PARK, Ill. -- Abbott Laboratories, a top seller of antibiotics and ulcer drugs, said yesterday that it will buy Alza Corp., the No. 1 U.S. maker of sustained-release drugs, for $7.3 billion, adding new cancer and incontinence medicines.Each Alza share is to be traded for 1.2 Abbott shares, or $53.03, based on Abbott's closing price of $44.1875, a 15 percent premium to Alza's closing price of $46.25 yesterday. Alza shares have soared 25 percent over the past week on expectations that the company would be acquired and were recently quoted at $48 in Instinet trading.

Digene Corp. a Beltsville-based developer of DNA-based medical tests for diseases, said yesterday that drug giant Abbott Laboratories will act as the marketer and distributor for its tests in Europe, the Middle East and Africa.Among the tests Abbott will market are Digene's diagnostic products for hepatitis B and the human papillomavirus (HPV), considered a precursor to cervical cancer.In the United States, Abbott, one of the world's largest marketers of medical diagnostics, will launch sales of Digene's new automated tests for chlamydia, a urinary tract infection, and gonorrhea, a sexually transmitted disease.

Karim Mehrazar, a professor of microbiology and immunology at Morgan State University, died of stomach cancer March 5 at Chesapeake Hospice in Linthicum. The Millersville resident was 52. Dr. Mehrazar was born and raised in Tabriz, Iran, and earned a bachelor's degree in medical technology from Tabriz University in 1975. After completing obligatory military service in the Iranian Royal Air Force, he enrolled at Indiana State University, where he earned a master's degree in microbiology in 1981.

HOW SHOULD you invest your money in 1998? Today, more thoughts between the holidays:DON'T OVERLOOK STOCKS: "A $1 investment in large company stocks made on Dec. 1, 1925, increased by year-end 1996 over 1,000 times to $1,371, representing a compound annual return, including reinvested dividends, of 10.7 percent."That same $1 investment in government bonds grew to only $33.73 (5.1 percent) and Treasury bills to only $11.34 (3.7 percent). Inflation grew at only 3.1 percent annually." (Ibbotson Associates)

MedImmune Inc. reported record revenue and earnings yesterday, the performance helped by sales of its new respiratory drug, Synagis, and a $47.4 million tax benefit.The Gaithersburg-based biotechnology company said it earned $72.7 million, or $1.34 per share, on revenue of $92.9 million in its fourth quarter, which ended Dec. 31. For the corresponding period of 1997, the company reported a profit of $3.3 million, or 7 cents a share, on sales of $53.6 million.The results include a one-time gain of $47.4 million due to a tax benefit and a one-time charge of $12.5 million due to anticipated returns of MedImmune's RespiGam, which was made obsolete by Synagis.

Digene Corp. said yesterday that its fiscal third-quarter loss widened despite increased revenue, largely because of a one-time charge related to its purchase of rights to a diagnostic test for sexually transmitted diseases. Digene Chief Executive Officer Evan Jones said the Gaithersburg company continues to support its planned acquisition by Cytyc Corp., although the merger remains under review by the Federal Trade Commission. Cytyc CEO Patrick J. Sullivan reaffirmed his support for the acquisition, which would pair two companies that offer complementary diagnostic tests for cervical cancer.