Abraxane and Lapatinib in Treating Patients With Stage I, Stage II, or Stage III Breast Cancer

DISEASE CHARACTERISTICS:

* Histologically confirmed breast cancer

  * Clinical stage I-III disease
* Measurable disease defined as ≥ 1 unidimensionally measurable lesion ≥ 20 mm by conventional techniques OR ≥ 10 mm with spiral CT scan
* HER2/neu 3+ by immunohistochemistry or positive by fluorescent in situ hybridization
* No known brain metastases
* Hormone receptor status unspecified

PATIENT CHARACTERISTICS:

* Menopausal status not specified
* Male or female
* Life expectancy \> 12 weeks
* ECOG performance status (PS) 0-1 OR Karnofsky PS 80-100%
* WBC ≥ 3,000/mm\^3
* Absolute neutrophil count ≥ 1,500 mm\^3
* Platelet count ≥ 100,000/mm\^3
* Total bilirubin normal
* AST and ALT ≤ 2.5 times upper limit of normal
* Creatinine normal OR creatinine clearance ≥ 60 mL/min
* LVEF ≥ 50% as measured by echocardiogram or MUGA scan
* No other malignancy within the past year
* Not pregnant or nursing
* Negative pregnancy test
* Fertile patients must use effective contraception
* Able to swallow and retain oral medication
* No history of allergic reactions attributed to compounds of similar chemical or biologic composition to lapatinib
* No ongoing or active infection
* No symptomatic congestive heart failure
* No unstable angina pectoris
* No cardiac arrhythmia
* No psychiatric illness or social situation that would preclude study compliance
* No other uncontrolled illness
* No gastrointestinal (GI) tract disease that would preclude ability to take oral medication
* No malabsorption syndrome
* No requirement for IV alimentation
* No uncontrolled inflammatory GI disease (e.g., Crohn's disease or ulcerative colitis)

PRIOR CONCURRENT THERAPY:

* No prior chemotherapy, immunotherapy, radiotherapy, or hormonal therapy for breast cancer
* No prior treatment with epidermal growth factor receptor targeting therapies
* No prior surgical procedures affecting absorption
* No prior surgery for breast cancer
* At least 14 days since prior and no concurrent CYP3A4 inducers, including any of the following:

  * Dexamethasone or dexamethasone equivalent dose ≥ 1.5 mg/day, including any of the following:

    * Cortisone (≥ 50 mg/day)
    * Hydrocortisone (≥ 40 mg/day)
    * Prednisone (≥ 10 mg/day)
    * Methylprednisolone (≥ 8 mg/day)
  * Phenytoin
  * Carbamazepine
  * Phenobarbital
  * Efavirenz
  * Nevirapine
  * Rifampin
  * Rifabutin
  * Rifapentine
  * Hypericum perforatum (St. John's wort)
  * Modafinil
* At least 7 days since prior and no concurrent CYP3A4 inhibitors, including any of the following:

  * Clarithromycin
  * Erythromycin
  * Troleandomycin
  * Delavirdine
  * Ritonavir
  * Indinavir
  * Saquinavir
  * Nelfinavir
  * Amprenavir
  * Lopinavir
  * Itraconazole
  * Ketoconazole
  * Voriconazole
  * Fluconazole (doses up to 150 mg/day are permitted)
  * Nefazodone
  * Fluvoxamine
  * Verapamil
  * Diltiazem
  * Cimetidine
  * Aprepitant
  * Grapefruit or its juice
* At least 6 months since prior and no concurrent amiodarone
* At least 2 days since prior and no concurrent gastric pH modifiers\*, including any of the following:

  * Cimetidine
  * Ranitidine
  * Nizatidine
  * Famotidine
  * Omeprazole
  * Esomeprazole
  * Rabeprazole
  * Pantoprazole
  * Lansoprazole
* NOTE: \*Antacids are allowed within 1 hour before and after administration of study drug
* No other concurrent investigational agents
* No other concurrent anticancer therapy, including chemotherapy, radiotherapy, immunotherapy, or antitumor hormonal therapy
* No concurrent herbal (alternative) medicines
* No concurrent combination antiretroviral therapy for HIV-positive patients
* Concurrent bisphosphonates allowed