Teva buys out partner in Japanese joint venture

Teva bought out Kowa, its partner in the venture, which generated sales of $200 million in 2010.

Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) announced that it will acquire the 50% interest formerly held by Kowa Company Ltd. in Teva-Kowa Pharma, the two companies' joint venture in Japan, for $150 million. With this acquisition, Teva will own 100% of the former joint venture.

Teva and Kowa announced the establishment of Teva-Kowa Pharma Co., Ltd. in September 2008, and have since grown the joint venture into one of the top 5 generic players in Japan. It generated sales of approximately $200 million in 2010.

"We are happy to have reached this agreement to bring all our Japanese operations under Teva's full control and ownership. Full ownership of all our activities, including Taiyo, will allow us to better grow our business in Japan," said Teva President and CEO Shlomo Yanai. Teva is also active in Japan with its branded medications and raw materials.

In July 2011, Teva completed the acquisition of Taiyo Pharmaceutical Industry Co. Ltd. for $934 million. Taiyo brings to Teva a portfolio of over 550 products and has activity in two locations in Japan, both of them far from areas harmed by the earthquake and tsunami in March this year.

Taiyo is the third largest generics manufacturer in Japan with sales of approximately $530 million in 2010. With this latest transaction, Teva's operations in Japan are expected to generate annual sales in excess of $800 million.

Teva's market cap is $31.42 billion on Nasdaq.

Published by Globes [online], Israel business news - - on September 26, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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