Teva buys out partner Kowa's interest in Japanese JV for $150 million

Israel-based Teva Pharmaceutical Industries (Nasdaq: TEVA), the world’s largest generic drugmaker, says that it will acquire the 50% interest formerly held by Japan’s Kowa (TYO: 3117) in their Japanese joint venture for a total consideration of $150 million. With this acquisition, Teva will own 100% of the former JV, which will immediately begin to do business as an important and wholly-owned member of the Teva group.

Teva and Kowa announced the establishment of Teva-Kowa Pharma in September 2008 (The Pharma Letter October 6, 2008), and have since grown the joint venture into one of the top 5 generic players in Japan, in cooperation with Kowa. The JV generated sales of about $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 Shlomo Yanai, president and chief executive of Teva, noting that, "with this stronger platform, Teva will be in a better position to further drive penetration of high quality generic pharmaceuticals in Japan and make better health care accessible to the Japanese people."