ABBOTT PARK, Ill--Takeda Pharmaceutical Co. Ltd. and Abbott Laboratories have entered into an agreement to conclude their TAP Pharmaceutical Products Inc. joint venture. The companies expect the transaction to close within 30-60 days.

 

TAP was created by Takeda and Abbott in 1977 and has been a successful venture for both companies over its three decades of existence. In 2007, TAP recorded revenues of $3.1 billion from its two products it has on the market: Prevacid and Lupron. TAP also has two new drug applications under review at the FDA.

 

Under terms of the agreement, the companies will evenly divide the value of the joint venture. Abbott receives rights to the oncology treatment, Lupron, which recorded sales of $600 million last year. It will also receive from Takeda payments of $1.5 billion over the next five years, based on the sales of Prevacid (which recorded sales of nearly $2.3 billion last year) and TAP's other current and certain future products. Takeda receives the rights to Prevacid, all the remaining TAP commercial and support organizations, and the rights to TAP's pipeline.

 

Following the completion of the transaction, Takeda plans to integrate TAP into two of its wholly-owned U.S. subsidiaries, Takeda Pharmaceuticals North America, Inc. and Takeda Global Research and Development Center, Inc. The Lupron franchise will become part of Abbott's U.S. pharmaceutical business.

 

In a related move as part of the planned dissolution of TAP, Alan MacKenzie, TAP president was named CEO of Takeda North America, replacing Mark Booth who will leave the company.

 

Abbott expects the transaction to be neutral to 2008 earnings per share. Takeda expects that this agreement will have no impact to its consolidated financial results for the current fiscal year.