Teva Pharmaceutical Industries Ltd. and Takeda Pharmaceutical Company Limited have agreed to form a generics joint venture in Japan. Subject to standard regulatory approvals, the business venture is expected to start operating in the second calendar quarter of 2016 with Teva holding a 51% stake and Takeda 49%.

The business venture will operate as an independent company with its own board of directors, chief executive officer, and executive leadership team. Further details of the agreement have not been disclosed. Given that the deal will not become effective until April 2016, there is no expected material financial impact for both Teva and Takeda in 2015.

The new business venture will combine Teva’s generics platform with Takeda’s brand presence and distribution capabilities in Japan. The move is aligned with a goal of the Japanese goverment to increase generic-market penetration in Japan to 80% by the end of fiscal year 2020.

Source: Teva Pharmaceutical Industries