Networking in Japan

Teva Pharmaceutical Industries Ltd. has been trying to capitalize on growth in Japan's generics market since the government set out to drive generics utilization in 2007, but the company's first attempt at a Japanese JV did not live up to expectations. In a new venture with Takeda Pharmaceutical Co. Ltd., Teva is availing itself of an extensive distribution network and a trusted local brand that could improve penetration.

Takeda, which will own 49% of the JV, gets access to Teva's world-leading portfolio of off-patent drugs and a home for its own off-patent drugs because the JV will operate as an independent company with its own management. If the JV uses Teva's low-cost API sourcing and manufacturing capabilities, Takeda's margins on its off-patent drugs also could be insulated from government-mandated price cuts that are widely expected...