TAP Pharmaceuticals

TAP Pharmaceuticals was an American pharmaceutical company formed in 1977 as a 50-50 joint venture between Abbott Laboratories and Takeda Pharmaceutical Company Limited, operating until its dissolution in 2008. Headquartered in Lake Forest, Illinois, the company was established to develop, approve, and market Takeda's discovered products in the United States and Canada, serving as a strategic entry point for the Japanese pharmaceutical giant into North American markets. TAP became highly successful with two flagship products: lansoprazole (Prevacid), a proton-pump inhibitor for treating acid-related disorders, and leuprorelin (Lupron), a treatment for prostate cancer and other hormone-sensitive conditions. The company began marketing Lupron in its establishment year and it became one of the most successful cancer treatments in the US market. However, TAP faced significant legal challenges in 2001 when it reached an $875 million settlement with the US Department of Justice and state attorneys general for Medicare fraud and illegal marketing practices related to Lupron, representing a record-high pharmaceutical settlement at the time. The settlement included $290 million for violating the Prescription Drug Marketing Act, $559.5 million for federal fraud charges, and $25.5 million to reimburse states' Medicaid programs. Despite these challenges, the joint venture was considered one of the most successful in American business history. In March 2008, Takeda and Abbott agreed to conclude the 30-year partnership, with assets divided strategically: Abbott retained rights to Lupron and its commercial organization, while Takeda received Prevacid rights, TAP's commercial infrastructure, pipeline assets, and paid Abbott approximately $1.5 billion over several years. Following the dissolution, TAP's operations were merged with Takeda Pharmaceuticals North America and Takeda Global Research & Development Center to form a top-15 pharmaceutical company in the United States with over 5,000 employees.