* Deal concerns vaccine for haemophilus influenza Type B
* Takeda Pharmaceuticals to be Novartis' partner
* Takeda to pay $1.06 mln upfront
ZURICH, May 26 Swiss drugmaker Novartis NOVN.VX said on Tuesday it will enter the Japanese vaccines market through an agreement with local firm Takeda Pharmaceuticals.
The agreement concerns Vaxem-Hib, a vaccine for the Haemophilus influenza Type B (Hib).
Takeda will become the exclusive partner for Vaxem-Hib in Japan and will pay Novartis 100 million yen ($1.06 million) upfront as well as milestone and royalty payments.
Hib infection is responsible for an estimated 386,000 deaths per year worldwide, Novartis said in a statement citing WHO estimates.
Japan is the world's third largest vaccine market valued at $640 million and is expected to grow further.
Takeda will be responsible for conducting clinical trials and submitting a New Drug Application (NDA). Following approval, Takeda will label the product and sell the vaccine under the Novartis brand name. ($1=94.70 Yen)
(Reporting by Lisa Jucca; Editing by David Cowell)