Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) is planning a joint venture in Japan in order to target the enormous potential in that country's growing generic drug market. The Tokyo business daily Nikkei reported today that Teva is planning a joint venture with Japanese drug firm Kowa Co. for marketing generic drugs in Japan.
Press reports quoted Nikkei saying that the two companies may sign an agreement within the next week and could start marketing products by early 2010.
Generic drugs comprise only 17% of the market in Japan compared to 60% in the US, UK and Germany. However, the Japanese government would like to see this figure rise to 30% to decrease the cost of caring for its ageing population.
Teva sells drugs in Japan, through a local office but not generic medications. Kowa is an unlisted mid-tier pharmaceutical company selling non-prescription drugs.
Teva's shares fell by 4.3% in trading on NASDAQ yesterday.
Published by Globes [online], Israel business news - www.globes-online.com - on September 23, 2008
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