Takeda Pharmaceutical Co. Ltd. and Abbott entered an agreement to conclude their TAP Pharmaceutical Products Inc. (TAP) joint venture, which was established in 1977. The companies expect the transaction to close within 30-60 days. 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.
   
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. In 2007, TAP had revenues of $3.1 billion from its two marketed products, Lupron and Prevacid. TAP also has two NDAs under review with the 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 Co. “With this agreement Takeda combines two successful organizations and creates a top 15 pharmaceutical company with more than 5,000 employees in the U.S. 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.”
   
Effective at the close of the transaction, Takeda Pharmaceuticals North America and Takeda Global R&D Center, will report to Takeda America Holdings, Inc. Alan MacKenzie, the current president of TAP and a former president of Takeda Pharmaceuticals North America, has been named executive vice president of Takeda America Holdings. Mr. MacKenzie will also serve as chief executive officer of Takeda Pharmaceuticals North America. Mark Booth, president of Takeda Pharmaceuticals North America, will stay with the company to support integration activities until the TAP transaction is closed. Nancy Joseph-Ridge, M.D., currently TAP’s vice president of R&D, will assume her position at Takeda Global R&D Center.
   
“I have great confidence in Takeda’s proposed new leadership for the U.S., an important market for Takeda’s global growth plans,” said Yasuchika Hasegawa, president, Takeda Pharmaceutical Co. “Alan MacKenzie not only helped launch both TPNA and its first product, Actos, he has been instrumental in helping create success at Takeda companies for more than 22 years. Dr. Nancy Joseph-Ridge is a well-known and highly respected physician, researcher and strong leader with an unwavering commitment to scientific excellence. I would also like to take this opportunity to thank Mark Booth for his many contributions to Takeda and wish him well in his future endeavors.”