Israel's Teva plans Japan generics JV - Nikkei

TOKYO, Sept 23 (Reuters) - The world's No.1 generic drug company, Teva Pharmaceutical Industries (TEVA.O) (TEVA.TA), will start selling generic medicines in Japan in a joint venture with Japanese drug firm Kowa Co, the Nikkei business daily said on Tuesday.

Teva's move comes as Japan tries to raise the share of generic drugs in the overall drug market to 30 percent by 2012 as it faces an ageing population and growing healthcare costs.

While generic drugs account for around 60 percent of the market in the United States, Britain, and Germany, its use rate remain lower in Japan at around 17 percent, data from the Japan Generic Pharmaceutical Manufacturers Association showed.

The Japanese government has made generics the default option over brand-name counterparts on prescription forms. It has also introduced incentives for pharmacies to sell generic drugs.

The two companies may reach an agreement as early as this month and start selling Teva products in Japan as early as 2010, the Nikkei said.

Currently, Teva sells some drugs in Japan through a local branch, but not generic medicines. Kowa is an unlisted mid-tier pharmaceutical company selling non-prescription drugs.

Both Teva's office in Japan and Kowa could not be reached for comment on Tuesday, a national holiday in Japan.

Teva has been looking to secure its lead in a consolidating generics sector throughout the world. It is buying rival Barr Pharmaceuticals BRL.N to expand U.S. and European sales.

In June, Japan's No.3 drug maker Daiichi Sankyo's (4568.T) acquired Indian drug giant Ranbaxy Laboratories Ltd (RANB.BO), which has expertise in developing generics. (Reporting by Yoko Kubota)