Teva chooses JV structure to enter Japan with Generics.. Teva Pharmaceutical Industries (TEVA +0.5%) and Takeda Pharmaceutical Company Limited (OTCPK:TKPHF)(OTCPK:TKPYY) establish a venture in Japan with the aim of marketing off-patent (generic) drugs. The Nagoya-based company, called Teva Takeda Yakuhin Ltd., will be led by industry veteran Hiroshi Matsumori.
Takeda expects the venture to be both earnings and cash flow accretive this year and thereafter. Teva expects accretion to non-GAAP EPS this year as well.
Japan is faced with a silver tsunami which is a aging population making it a great market for generics...Many other asian countries are also facing the same situation and reducing drug costs will push generic sales for years... Joint ventures, with good partners, are a a good structure choice for opening new markets...