Generic player Teva Pharmaceutical Industries Ltd. (TEVA) recently announced that its joint venture in Japan will acquire a majority stake in Taisho Pharmaceutical Industries, Ltd. Teva-KOWA Pharma Co., Ltd., Teva’s joint venture in Japan with KOWA Company, Ltd., will acquire at least 66.7% of Taisho’s outstanding shares. The deal is schedule to close by year end.

While the companies did not disclose any financial details regarding the agreement, we believe this move will help Teva strengthen its presence in Japan. With Taisho manufacturing and marketing more than 200 generic products to pharmacies, clinics, hospitals and wholesalers, through a well-established sales and marketing force, Teva-KOWA Pharma should be well positioned to gain a significant share of the generic drugs market in Japan.

Taisho is the seventh largest generics manufacturer in Japan. Teva should also benefit from the Government’s initiative to increase the use of generic pharmaceuticals in Japan.

Japan is the second largest pharmaceutical market in the world and is valued at about $80 billion. The low level of generic penetration in the market represents significant commercial opportunity for generic players like Teva. According to IMS and the Japanese Generics Manufacturing Association, generic pharmaceuticals represented only 5.7% in value (approximately $4.6 billion) or 16.9% in volume in 2006. The Government intends to double generic utilization to 30% by 2012.

Teva had entered into a joint venture with KOWA Pharma in Sep 2008. Through this joint venture, Teva is looking to establish itself as a major supplier of generic drugs in Japan.

Zacks Investment Research

1. (TEVA) Teva Pharmaceutical Expands Cancer PortfolioIn a move to expand its branded product offering, generic player Teva Pharmaceutical Industries Ltd....
2. (AMGN) Teva Pharmaceutical Industries Seeks FDA Approval for XM02Amgen, Inc.’s (AMGN) Neupogen could face competition in the near future from generic player, Teva...
3. (ABT) Abbott Laboratories Settles Dispute with Teva Pharmaceutical IndustriesIn a filing with the U.S. Securities and Exchange Commission (SEC), Abbott Laboratories Inc. (ABT)...
4. (TEVA) Teva Pharmaceutical Industries Reports Strong QuarterTeva Pharmaceutical Industries Ltd. (TEVA) reported earnings of 89 cents in the third quarter of...
5. (CEPH) Cephalon’s Nuvigil Faces Generic Threat Teva PharmaceuticalsCephalon, Inc. (CEPH) recently received a Paragraph IV Certification Notice Letter regarding an Abbreviated New...
6. (TEVA) Teva Pharmaceuticals’ Copaxone ChallengedShares of generic player Teva Pharmaceuticals, Inc. (TEVA) were down approximately 2% on news regarding...

Search Posts by Tag: TEVA | Teva Pharmaceutical Industries Limited | Drug Manufacturers - Other | Healthcare

RSS Feeds by Tag: TEVA | Teva Pharmaceutical Industries Limited | Drug Manufacturers - Other | Healthcare |

Other Posts by: vitalstocks | RSS Feed for this author