Published on : Dec 02, 2015
Teva Pharmaceutical has entered into an agreement with Takeda, a pharmaceutical company based in Japan, on Nov. 30th, 2015 in a bid to strengthen its presence in the generic market of Japan. According to the contract, the companies would be able to sell generic drugs together with other branded drugs that are on the verge of patent expiration in Japan.
The motto of this partnership is to bring drugs and treatments for various disorders and diseases at an affordable rate in the Japanese market. The Japanese government is very strict about the products pricing and does not allow expensive drugs; however, Teva and Takeda expect steady support to them from the Japanese government in introducing affordable treatments in Japan.
The contact permits Teva to own a share of 51% of the total stake, the company said in a statement to the Tokyo Stock Exchange. An independent entity would be created from this partnership and the operations will be initiated from the Q2 of 2016.
At present, a high demand for healthcare can be witnessed in Japan, primarily triggered by the increase in the geriatric population in the country. As per a report issued by IMS Health, the projected rise in healthcare expenditure in Japan is likely to drop a bit and fall in between the 2–5% range by the end of 2017. The gradual increments are likely to be hampered by biennial price cuts, resulting in steady decline.
Japan is one of the fastest developing generics markets across the world. The nation is expected to maintain its high growth, which is driven by social requirements such as rising need for healthcare, regularized supply of high quality yet affordable medicines and the government policies pertaining to the reduction of healthcare expenses, Takeda and Teva say in a joint statement issued on Nov. 30th, 2015.