TAP Pharmaceutical Products
Encyclopedia
TAP Pharmaceutical Products was formed in 1977 as a joint venture
between the two global pharmaceutical companies, Abbott Laboratories
and Takeda Pharmaceutical Co. The company markets Prevacid (lansoprazole
) and Lupron Depot (leuprolide
acetate for depot suspension), both leaders in their classes. Joint venture came to an end in March 2008 and Takeda took over the TAP.
Lupron Depot is indicated for the palliative treatment of advanced prostate cancer, for management of endometriosis, in combination with iron for the preoperative treatment of anemia caused by uterine fibroids, and for the treatment of children with central precocious puberty.
programs.
The $875 million settlement broke down to:
$290 million for violating the Prescription Drug Marketing Act.
$559.5 million to settle federal fraud charges for overcharging Medicare.
$25.5 million reimbursement to 50 states and Washington, D.C., for filing false claims with the states' Medicaid programs.
The whistle-blowers of this case are Douglas Durand, a former TAP vice president of sales, and Dr. Joseph Gerstein.
The government would pay Durand 14 percent of the $559.5 million Medicare portion of the settlement, or more than $78 million. Gerstein would receive 3 percent of the Medicare settlement, or more than $16 million.
For more detail, see
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
between the two global pharmaceutical companies, Abbott Laboratories
Abbott Laboratories
Abbott Laboratories is an American-based global, diversified pharmaceuticals and health care products company. It has 90,000 employees and operates in over 130 countries. The company headquarters are in Abbott Park, North Chicago, Illinois. The company was founded by Chicago physician, Dr....
and Takeda Pharmaceutical Co. The company markets Prevacid (lansoprazole
Lansoprazole
Lansoprazole is a proton-pump inhibitor which prevents the stomach from producing gastric acid. It is manufactured by a number of companies worldwide under several brand names . It was first approved by the U.S...
) and Lupron Depot (leuprolide
Leuprolide
Leuprorelin or leuprolide acetate is a GnRH analog. Proper Sequence: Pyr-His-Trp-Ser-Tyr-D-Leu-Leu-Arg-Pro-NHEt - Mode of action:Leuprolide acts as an agonist at pituitary GnRH receptors...
acetate for depot suspension), both leaders in their classes. Joint venture came to an end in March 2008 and Takeda took over the TAP.
Lupron Depot is indicated for the palliative treatment of advanced prostate cancer, for management of endometriosis, in combination with iron for the preoperative treatment of anemia caused by uterine fibroids, and for the treatment of children with central precocious puberty.
$875 million settlement with DOJ
On October 3, 2001, the DOJ announced that TAP Pharmaceutical Products agreed to pay the government a record $875 million to settle extensive civil and criminal charges of illegally marketing and manipulating the costs of Lupron under the Medicare and MedicaidMedicaid
Medicaid is the United States health program for certain people and families with low incomes and resources. It is a means-tested program that is jointly funded by the state and federal governments, and is managed by the states. People served by Medicaid are U.S. citizens or legal permanent...
programs.
The $875 million settlement broke down to:
$290 million for violating the Prescription Drug Marketing Act.
$559.5 million to settle federal fraud charges for overcharging Medicare.
$25.5 million reimbursement to 50 states and Washington, D.C., for filing false claims with the states' Medicaid programs.
The whistle-blowers of this case are Douglas Durand, a former TAP vice president of sales, and Dr. Joseph Gerstein.
The government would pay Durand 14 percent of the $559.5 million Medicare portion of the settlement, or more than $78 million. Gerstein would receive 3 percent of the Medicare settlement, or more than $16 million.
For more detail, see