Takeda Pharmaceutical to Pay Abbott Laboratories up to $1.5B in Venture Split
OSAKA, Japan, and ABBOTT PARK, Ill., March 19 /PRNewswire-FirstCall/ -- Takeda Pharmaceutical Company Limited and Abbott have entered into an agreement to conclude their TAP Pharmaceutical Products Inc. (TAP) joint venture. The companies expect the transaction to close within 30-60 days.
Under terms of the agreement, the companies will evenly divide the value of the joint venture. Abbott receives rights to the oncology treatment, Lupron, including the commercial organization supporting that franchise, and will receive payments based on TAP's other current and certain future products. Takeda receives the rights to the product Prevacid, all the remaining TAP commercial and support organizations, and the rights to TAP's pipeline.
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.
The TAP joint venture was created by Takeda and Abbott in 1977 and has been one of the most successful joint ventures in the history of American business. In 2007, TAP had revenues of $3.1 billion from its two currently marketed products, Prevacid and Lupron. Additionally, TAP has two new drug applications under review at the U.S. Food and Drug Administration (FDA).
"I want to take this opportunity to thank our partners at Abbott and the many people who helped make TAP a successful company in its more than 30 years of existence," said Yasuchika Hasegawa, president, Takeda Pharmaceutical Company Limited. "With this agreement Takeda combines two successful organizations and creates a top 15 pharmaceutical company with more than 5,000 employees in the United States. This size and talent base creates a tremendous platform for continued growth in the world's largest pharmaceutical market, which plays a significant role in Takeda's ongoing global growth."
"Takeda and Abbott have shared in the commercial success of TAP for many years," said Miles D. White, chairman and chief executive officer, Abbott. "Now we have the opportunity to make a strategic change that equally splits the 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 in oncology where we have a number of promising compounds advancing through our 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.
About TAP Pharmaceutical Products Inc.
TAP Pharmaceutical Products Inc., located in Lake Forest, Ill., is a joint venture between Abbott, headquartered in Abbott Park, Ill., and Takeda Pharmaceutical Company Limited, of Osaka, Japan. TAP markets PrevacidÂ® (lansoprazole) and Lupron DepotÂ® (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 the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs 68,000 people and markets its products in more than 130 countries. Abbott's news releases and other information are available on the company's Web site at http://www.abbott.com.
Private Securities Litigation Reform Act of 1995
A Caution Concerning Forward-Looking Statements Some statements in this news release may be forward-looking statements for the purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors," to Abbott's Annual Report on Securities and Exchange Commission Form 10-K for the year ended Dec. 31, 2007, and are incorporated by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments.
Takeda, located in Osaka, Japan, is a research-based global company with its main focus on pharmaceuticals. As the largest pharmaceutical company in Japan and one of the global leaders in the industry, Takeda is committed to striving toward better health for individuals and progress in medicine by developing superior pharmaceutical products. Additional information about Takeda is available through its corporate website, http://www.takeda.com/.
Takeda Forward-Looking Statement
This press release contains forward-looking statements regarding the Company's plans, outlook, strategies and results for the future. All forward-looking statements are based on judgments derived from the information available to the Company at this time. Certain risks and uncertainties could cause the Company's actual results to differ materially from any projections presented in this press release. These risks and uncertainties include, but are not limited to, the economic circumstances surrounding the Company's business; competitive pressure; relative laws and regulations; product development programs; and changes in exchange rates. We assume no obligation to update or reverse any forward-looking statements or other information contained in this presentation, whether as a result of new information, future events, or otherwise.