Takeda, Abbott Announce Plans to Conclude TAP Joint Venture
Under terms of the agreement, the companies will evenly divide the valueof the joint venture. Abbott receives rights to the oncology treatment,Lupron, including the commercial organization supporting that franchise, andwill receive payments based on TAP's other current and certain futureproducts. Takeda receives the rights to the product Prevacid, all theremaining TAP commercial and support organizations, and the rights to TAP'spipeline.
Abbott expects the transaction to be neutral to 2008 earnings per share.Takeda expects that this agreement will have no impact to its consolidatedfinancial results for the current fiscal year.
The TAP joint venture was created by Takeda and Abbott in 1977 and hasbeen one of the most successful joint ventures in the history of Americanbusiness. In 2007, TAP had revenues of $3.1 billion from its two currentlymarketed products, Prevacid and Lupron. Additionally, TAP has two new drugapplications under review at the U.S. Food and Drug Administration (FDA).
"I want to take this opportunity to thank our partners at Abbott and themany people who helped make TAP a successful company in its more than 30 yearsof existence," said Yasuchika Hasegawa, president, Takeda PharmaceuticalCompany Limited. "With this agreement Takeda combines two successfulorganizations and creates a top 15 pharmaceutical company with more than 5,000employees in the United States. This size and talent base creates atremendous platform for continued growth in the world's largest pharmaceuticalmarket, which plays a significant role in Takeda's ongoing global growth."
"Takeda and Abbott have shared in the commercial success of TAP for manyyears," said Miles D. White, chairman and chief executive officer, Abbott."Now we have the opportunity to make a strategic change that equally splitsthe assets in a way that will benefit both Abbott and Takeda in the future.For Abbott, the addition of Lupron establishes an on-market presence inoncology where we have a number of promising compounds advancing through ourpipeline."
Following the completion of the transaction, Takeda plans to integrate TAPinto two of its wholly-owned U.S. subsidiaries, Takeda Pharmaceuticals NorthAmerica, Inc. and Takeda Global Research and Development Center, Inc. TheLupron franchise will become part of Abbott's U.S. pharmaceutical business.
About TAP Pharmaceutical Products Inc.
TAP Pharmaceutical Products Inc., located in Lake Forest, Ill., is a jointventure between Abbott, headquartered in Abbott Park, Ill., and TakedaPharmaceutical Company Limited, of Osaka, Japan. TAP markets Prevacid(R)(lansoprazole) and Lupron Depot(R) (leuprolide acetate for depot suspension).For more information about TAP Pharmaceutical Products Inc., and its products,visit the company's web site at http://www.tap.com.
Abbott is a global, broad-based health care company devoted to thediscovery, development, manufacture and marketing of pharmaceuticals andmedical products, including nutritionals, devices and diagnostics. Thecompany employs 68,000 people and markets its products in more than 130countries. Abbott's news releases and other information are available on thecompany's Web site at http://www.abbott.com.
Private Securities Litigation Reform Act of 1995
A Caution Concerning Forward-Looking StatementsSome statements in this news release may be forward-looking statements for thepurposes of the Private Securities Litigation Reform Act of 1995. Abbottcautions that these forward-looking statements are subject to risks anduncertainties that may cause
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