Teva and Takeda Partner To Meet Demand For Generics In Japan
Japan is said to be one of the fastest growing generics markets in the world, and in light of the Japanese government’s determination to decrease healthcare expenditures, the public will require greater access to generic medicines.
December 2, 2015 | by Sarah Massey, M.Sc.
Yesterday, Teva Pharmaceutical Industries Ltd. and Takeda Pharmaceutical Company Limited announced their intention to form a partnership, with a focus on providing generics to the Japanese market. The partnership is certainly a strategic move for both companies; Takeda has an illustrious history as a leader in Japan’s pharmaceutical R&D industry, while Teva is regarded as one of the top ten pharmaceutical companies in the world, known for leading the pack in the generics space.
Japan is said to be one of the fastest growing generics markets in the world, and in light of the Japanese government’s determination to decrease healthcare expenditures, the public will require greater access to generic medicines. Takeda’s presence on the Japanese market, in combination with Teva’s multiple areas of expertise – including supply chain, R&D and operational network – have some calling the collaboration “unprecedented in Japan.”
As with any collaborative agreement, the partnership is subject to a number of regulatory approvals. The companies say they expect operations to commence in the second calendar quarter of 2016. Patients will have access to Teva’s generic medicines along with a number of Takeda’s products.
Teva is set to have a controlling share of 51 percent in the joint venture, while Takeda will have a 49 percent stake. The companies have also said that the collaborative entity will operate as a separate company complete with its own Board of Directors, Chief Executive Officer, and Executive Leadership team.
“We are delighted to partner with Teva to start the new business in Japan,” said Dr. Masato Iwasaki, 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 companies point out that because the expected start of the partnership is well into 2016, they don’t expect the joint venture to generate any significant financial revenue by the end of the 2015 calendar year. “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 the President and CEO of Teva Global Generic Medicines, Siggi Olafsson.
“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,” said Olafsson. “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.”
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