Over the years Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA has struggled to break into the Japanese market and over the weekend the Israeli company announced that it is divesting from its joint venture in Japan. Teva has agreed to sell its stake in Teva Takeda Pharma to private equity firm J-Will Partners, which has established a company called JKI. Teva set up the joint venture with Japanese company Takeda nine years ago. Teva believes that the sale will help it focus on bringing innovative branded drugs to the Japanese market and says that the deal fits with its strategic growth plan. Financial details of the deal were not disclosed but it is believed to be immaterial for Teva.
Teva began operating significantly in Japan in 2008 when it established a joint venture with a local generics company and subsequently it acquired two companies for more than $1 billion. The joint venture was dissolved after several years when Teva acquired its half of the venture. In 2015, Teva established the joint venture with Takeda from which it is now divesting, with Teva holding a 51% stake and Takeda 49%. In 2020, Teva announced its new strategic focus in Japan and the joint venture began focusing on unique innovative drugs and specific generic drugs.
Teva EVP international markets commercial Mark Sabag said, "This is another step in our Pivot to Growth strategy to focus the business. Furthermore, we are confident that this agreement with JKI will ensure the continued delivery of high quality, affordable medicines to patients in Japan."
Teva has a market cap of $19.9 billion after its share price has risen 66% since the start of 2024, although the share price fell 1.93% on the TASE yesterday and 2.8% on Wall Street on Friday.
Published by Globes, Israel business news - en.globes.co.il - on December 9, 2024
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