Astellas to co-promote Astra asthma drug in Japan

* Symbicort deal comes ahead of hoped-for Q4 Japan approval

* Astellas to pay AstraZeneca $31.5 mln upfront

LONDON, Aug 4 (Reuters) - AstraZeneca (AZN.L) has signed a deal with Astellas Pharma (4503.T) for the Japanese drugmaker to co-promote its Symbicort Turbuhaler asthma medicine in Japan, the two companies said on Tuesday.

The deal increases AstraZeneca's reach in the country -- the world's second largest market for pharmaceuticals after the United States -- ahead of the drug's expected launch later this year.

Astellas, which will be responsible for distribution, will pay AstraZeneca 3.0 billion yen ($31.55 million) upfront in addition to milestone payments of up to 5.5 billion yen, depending on the medicine's progress in the Japanese market.

AstraZeneca submitted an application to sell Symbicort for asthma in Japan in 2007 and expects to hear back from regulators in the fourth quarter of 2009. The drug is also being developed for chronic obstructive pulmonary disease (COPD).

"Partnering with Astellas will ensure that we successfully launch and maximise the potential of Symbicort Turbuhaler for the roughly five million people in Japan living with asthma," said Bruno Angelici, AstraZeneca Executive Vice President for International Sales and Marketing.

Symbicort, which is an established product in other markets, generated sales of $1.07 billion in the first half of 2009. ($1=95.09 Yen) (Reporting by Ben Hirschler; Editing by Hans Peters)