Teva Pharmaceutical Industries Ltd. and Takeda Pharmaceutical Company Limited have released further details on their generics joint venture in Japan, which the companies announced in late November 2015. 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. 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 government to increase generic-market penetration in Japan to 80% by the end of fiscal year 2020.

Takeda will split off its off-patented and data exclusivity expired products business (“long listed products business”) via an absorption-type split, and subsequently the business will be succeeded by the Japanese subsidiaries of Teva Pharmaceutical Industries Ltd. of Israel. This is a triangular absorption-type company split among Teva Pharma Japan Inc. and Taisho Pharm. Ind., Ltd. as well as Takeda. In this absorption-type company split, Takeda will be the splitting company and Taisho Pharm will be the succeeding company. Takeda’s long listed products business will be transferred to Taisho Pharm, and Taisho Pharm will allocate shares of Teva Pharma, which will become its parent company, to Takeda as consideration for the company split. The company name of Taisho Pharm, which will succeed Takeda’s long listed products business and also continue its generics business, will become Teva Takeda Yakuhin Ltd., and the company name of Teva Pharma, which will continue its generics business, will become Teva Takeda Pharma Ltd. Both companies will jointly engage in the new business.

The new business venture of Teva Takeda Pharma and Teva Takeda Yakuhin to be established in or after April 2016, will deliver Teva’s generic medicines and Takeda’s long listed products to patients and healthcare professionals in Japan. Its aim is to become a leading off-patent product (including generic medicines and long listed products) company in Japan, leveraging Takeda’s corporate brand and the distribution network that has been built through Takeda’s longstanding business in Japan, and Teva’s wide product portfolio and business efficiency.

Source: Takeda Pharmaceutical