Teva Pharmaceutical Industries and Takeda Pharmaceutical Co. have entered into a definitive agreement to establish a new business venture to meet a range needs for generics in Japan. Japan is among the fastest growing generics markets in the world, driven by social requirements for stable supply of affordable high quality medicines and the Japanese government's policy of reduction of healthcare expenditures. Takeda’s strong distribution presence in Japan will combine with Teva’s supply chain, operational network, global commercial infrastructure, and R&D.
Subject to standard regulatory approvals, the business venture is expected to start operating in 2Q16, and will offer patients and the healthcare system the portfolio of Teva’s generic medicines and Takeda’s products. Teva will have a 51% stake in the new company and Takeda will have 49%. The business venture will operate as an independent company with its own board of directors, chief executive officer, and executive leadership team. Further details were not disclosed.
"We are delighted to partner with Teva to start the new business in Japan," said Masato Iwasaki, Ph.D., president of Takeda’s Japan Pharma Business Unit. "Takeda will further strengthen its initiative as a leading company in the Japanese pharmaceutical industry, leveraging our activities to lead innovation in medicine as well as supporting the new company's business."
"The new business venture will combine Teva's strong generics platform, portfolio and quality across the value chain with Takeda's leading brand presence and distribution capabilities in Japan," said Siggi Olafsson, president and chief executive officer of Teva Global Generic Medicines. "This unique combination will create a company ideally positioned to lead the high growth in the generic market in Japan and is aligned with the Japanese government objectives to reach 80% generic penetration by the end of fiscal year 2020. The new business venture with Takeda reaffirms our long standing commitment to Japanese patients and delivers on Teva’s strategy of increasing our presence in key emerging markets to position Teva for long-term sustainable growth.”
