IMS Company Profiles - Report Buyer

IMS COM PANY PRO FILES TAKEDA
• Year: 2005
Abbott is su ing Takeda, al leg ing that it is over charg ing the TAP jv for lansoprazole, es ti mat ing ex cess
prof its of around $200-300 mil lion for Takeda an nu ally over a 10-year sup ply agree ment. Abbott also
claims that Takeda forced TAP into ex tend ing through May 2015, an ex clu sive sup ply agree ment that was
set to expire in May 2005.
Wyeth ac quired one-quar ter of Takeda’s 40% stake in the com pa nies’ Jap a nese jv Wyeth KK, as part of
an eq uity trans fer agree ment trig gered by the re cent ap proval and launch of Enbrel in Ja pan and now has
70% own er ship and full man age ment con trol of its Jap a nese op er a tion which em ploys around 1,700 peo -
ple. Fi nan cial de tails were not dis closed but were said to re flect fair mar ket value. In May 2003 Wyeth
(USA) an nounced its in ten tion to buy out Takeda’s 40% share in its Jap a nese jv, over the com ing years,
con vert ing the op er a tion into a 100%-owned sub sid iary of Wyeth. Both com pa nies also agreed to co-pro -
mote Wyeth’s Enbrel for rheu ma toid arthritis as well as two unnamed products.
Takeda sold five small sub sid iary com pa nies to Osaka Gas Chem i cals, as part of a con tin u ing ef fort to
con cen trate re sources on its core pre scrip tion pharmaceuticals busi ness. The op er a tions in clude wholly
owned Ja pan EnviroChemicals, spun off two years ago into an in de pend ent sub sid iary as a pre lude to full
divestment.
• Year: 2004
TAP agreed to pay $150 mil lion to re solve civil law suits about the mar ket ing and pric ing of Lupron, push -
ing to tal com pany pay outs to more than $1 billion.
New Orlean’s phy si cian, John LaCorte, filed a whistle blow er suit against TAP, al leg ing that the firm vi o -
lated its agree ment to of fer Medicaid its best price for Prevacid by charg ing up to 20 times more than it
charged other cus tom ers.
TAP an nounced the ap point ment of Alan Mac Ken zie as pres i dent, suc ceed ing H Thomas Watkins.
Takeda agreed with its main un ion to scrap lim its on fi nan cial re wards for em ployee in ven tions which con -
trib ute to cor po rate rev e nue. The firm in tro duced a scheme in 1998 which al lowed up to Yen10 mil lion per
em ployee for a max i mum of five years, based on rel e vant world wide sales. The amount was raised to
Yen30 mil lion two years ago. This ceil ing was re moved and will now be ap plied ret ro spec tively to prod ucts
launched since 1994. The changes were made in re sponse to a Jan u ary 2004 revision of Japan’s Patent
Law.
Masahiko Fujino, for mer chair man of Takeda Chem i cal In dus tries died aged 72.
Takeda’s UK R&D sub sid iary, Takeda Eu rope Re search and De vel op ment Cen ter an nounced a 90% re -
duc tion in staff num bers, from 168 to 16 from Au gust 2004.
A Wis con sin court sued TAP and 19 other phar ma ceu ti cal com pa nies for pub lish ing false av er age whole -
sale prices (AWPs), lead ing to higher costs for pay ers. The law suit did not spec ify what dam ages or res ti -
tu tion Wis con sin is seek ing. How ever, the As so ci ated Press quoted the at tor ney gen eral as say ing “the
numbers are very large”.
The US su preme court over turned an ap peals court rul ing which would have al lowed for eign pur chas ers
of vi ta mins man u fac tured by non-US com pa nies to sue in US courts for vi o la tions of the Sherman an ti -
trust law, even though all the vi ta mins were bought out side the USA. Takeda Vi ta min & Food USA is one
of the defendants.
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