Takeda To Buy Abbott Share Of Joint Venture
2 CommentsBy Ed Silverman // March 19th, 2008 // 7:40 am
Japan’s biggest drug maker plans to spend some $5 billion to buy out Abbott Labs’ share in TAP Pharmaceuticals, a 50-50 joint venture in the US, according to Reuters, which cites an unidentified source. The deal, which would strengthen Takeda’s US sales operations, would be the biggest overseas acquisition by a Japanese drugmaker and follow Eisai’s purchase of cancer specialist MGI Pharma this year for $3.9 billion.
With Japan’s drug market showing little growth, the nation’s largest drugmakers are looking to boost their presence in the world’s biggest drug market as well as replenish their pipelines, Reuters notes. TAP’s main product is the Prevacid heartburn drug and the patent expires next year, although TAP is seeking approval for a modified release version.
The source, who declined to be identified as the agreement has not yet been announced, tells Reuters that Takeda is holding talks to make TAP a wholly owned unit and hopes to complete the deal by the year-end. Takeda, which has earmarked $10 billion for major investments including acquisitions, has been trying to gain full control of TAP Pharmaceutical for a decade but has been at odds with Abbott over the price.
“If they are paying $5 billion, it does sound a little expensive so it’s not a deal to get all excited about, but it’s good that they’ve finally got it out the way,” Daiwa Institute of Research analyst Kumi Miyauchi, tells Reuters. “Now they know how much they are paying, it frees them up more to pursue other deals.” He adds that it’s important for Takeda to gain control of TAP before key Prevacid sales staff started leaving the firm.
Takeda plans to merge TAP with wholly-owned firm Takeda Pharmaceuticals North America, Reuters writes, adding that the Nikkei business daily reports Takeda aims to minimize the amount of cash needed for the acquisition by transferring TAP’s prostate cancer treatment, Lupron, as well as the rights to some experimental meds to Abbott. A Takeda spokesman tells Reuters no decision has been on buying TAP. Abbott declined to comment.
Inaam Schneider MD
THese were unkind remarks about the Merck reps & the exec’s regarding the use of the Pedometers .Enough has been said about the Enhance Study . The study was ill designed . We all know that , we need LDL’s of 75 or less to see plague regression .
I take my hat off to the brave young men & women who have to go out & market Zetia & Vytorin , to ignorant doctors who do not take time out to read the Medical literature & get there information from from TV or uniformed , non-medical TV hosts .Please try to be more PROFESSIONAL in your reporting .
Ed Silverman
Dear Dr. Schneider,
For the record, your comment pertains to the post about the Zetia pedometers, not this deal between Takeda and Abbott.
Unfortunately, I think you misunderstood my brief interlude from the usual news items. I wasn’t making fun of the reps, or doctors who may have received the pedometers. I will say that such items are examples of unnecessary promotional spending. Yes, the devices no doubt represent a tiny sum, but add these things up and it just seems that if money is to be spent on promotion, there must be a more efficient and valid way to do so. To your point about reading literature - do you think offering pedometers somehow compensates for literature, or the time needed to read the medical literature?
You are, however, correct that I was poking fun at the Vytorin situation. By and large, the folks at Merck and Schering-Plough have handled this episode poorly and have invited a bit of skepticism (although you may notice that Merck execs are quite happy to let Schering-Plough execs take the heat). And so I took the liberty of injecting some sarcasm into the fray. But it was in the form of commentary - not old-fashioned reporting. You’re free to disagree with the rare viewpoint I offer in the midst of all the news items and interviews I run on the site. That’s what this is all about - hashing things over and, hopefully, learning some new things. But my professional reporting standards remain the same.
Anyway, thanks for writing. I understand your point of view. I simply have my own, in this instance.
Regards
ed