Takeda and Abbott splitting TAP venture.
Takeda and Abbott Splitting TAP Venture. Takeda Pharmaceuticals Ltd. and Abbott Laboratories Inc. (Abbott Park IL) announced last week they are splitting their very lucrative joint U.S. venture, TAP Pharmaceutical Products. Abbott receives all current and future rights and revenue to the oncology treatment, Lupron and Takeda gets the same for the ulcer drug Prevacid. Takeda will also pay Abbott roughly $1.5 billion over five years contingent on Prevacid and future product sales. Neither company expects its earnings in the current year to be affected by the breakup. Standard & Poor's Ratings Services said it will assess the terms of the split and whether it will affect the ratings of the firms. An Abbott spokesman said the deal "makes sense" for Abbott and represents a strategic move to reshape the company's portfolio. The addition of Lupron is complementary to Abbott's emerging oncology pipeline. Abbott is focusing on growth areas such as treatments related to heart disease and cancer. Unlike Takeda's Prevacid patent, Abbott's Lupron formulation patents extend to 2015. Lupron treats prostate cancer and endometriosis. The drug had $600 million in sales for 2007, while Prevacid had $2.3 billion.