Teva-KOWA to acquire a majority share in Taisho Pharmaceutical Industries

Israeli generics giant Teva Pharmaceutical Industries says that Teva-KOWA Pharma, its joint venture in Japan with KOWA Company, has signed a definitive agreement to acquire a majority of the outstanding shares of Taisho Pharmaceutical Industries. Under the terms of the deal, Teva-KOWA Pharma will purchase at least 66.7% of Taisho's outstanding shares. The transaction, financial terms of which were not disclosed, was expected to close by the end of 2009.

Taisho manufactures and markets a portfolio of over 200 generic products to pharmacies, clinics, hospitals and wholesalers, through a well-established sales and marketing force. These efforts are supported by a finished dosage manufacturing facility and R&D capabilities. Taisho is a privately held company with revenues of over $130 million, and is Japan's seventh-largest maker of copy medicines, noted Teva in a press statement on December 24.

This acquisition will further advance Teva-KOWA in its strategic objective to become the provider of choice of high-quality affordable generic medicine in the Japanese market, supporting the Japanese government's initiative to increase the use of generic pharmaceuticals. Teva-KOWA will leverage Taisho's commercial presence in the Japanese generics market and its expertise in developing, registering, manufacturing and marketing generics in Japan, the Israeli firm added.