Takeda, Abbott split TAP's assets

LONDON Takeda Pharmaceuticals and Abbott Laboratories have decided to end their joint venture, TAP Pharmaceuticals, in a deal worth roughly about $1.5 billion.

Abbott will take control of TAP’s oncology drug Lupron, for prostate cancer and Takeda gets full rights to the heartburn drug Prevacid. Takeda is paying the $1.5 billion to Abbott over a five-year period in relation to Prevacid. The amount is based on future sales of the drug, which had $1.5 billion in sales from April until September of last year.

But unlike Prevacid’s patent, which is set to expire next year, Lupron’s patent won’t expire until 2015. Lupron had sales of $600 million in 2007. Takeda is trying to thwart generic competition by seeking approval of a modified version of the drug.