TEL AVIV, Sept 24 Teva Pharmaceutical Industries
Ltd TEVA.O and Kowa Co said on Wednesday they signed an
agreement to establish a generic pharmaceutical company in
Japan, which will seek to reach sales of $1 billion in 2015.
The company, Teva-Kowa Pharma Co., will seek to leverage the
marketing, research and development, manufacturing and
distribution capabilities of each company to supply high-quality
generic pharmaceuticals for the Japanese market, the companies
said in a statement.
Israel-based Teva (TEVA.TA) is the world's largest maker of
Each company will have a 50 percent stake in Teva-Kowa
Pharma, which will become operational in 2009.
"Combining Kowa's knowledge of and established reputation
within the Japanese market with Teva's global leadership and
expertise in generics should enable us to maximise the
opportunity available in this important growth market," Shlomo
Yanai, Teva's president and chief executive officer, said in a
"Our objective is to provide the Japanese generic market,
which is expected to double in volume in the next 5 years, with
high quality and affordable pharmaceuticals, supporting the
government's stated objective of increasing generic
Yanai said this partnership was an important milestone in
executing Teva's five-year strategic plan, as it provides a
platform for Teva to strengthen its leadership and establishes a
strong presence in the Japanese market.
Japan is the second-largest pharmaceutical market in the
world, valued at $80 billion. Generics represent only 5.7
percent in value or 16.9 percent in volume in 2006, according to
IMS Health and the Japanese Generics Manufacturing Association.
In 2007, the Ministry of Finance announced a plan to double
generic utilisation to 30 percent by 2012.
(Reporting by Tova Cohen; editing by Hans Peters)