Teva divests from Japanese JV with Takeda

Over the years Teva Pharmaceutical Industries Limited (New York Stock Exchange: Tifa; level: Tifa The Israeli company has struggled to break into the Japanese market, and the Israeli company announced over the weekend that it would divest from its joint venture in Japan. Teva has agreed to sell its stake in Teva Takeda Pharma to private equity firm J-Will Partners, which has created a company called JKI. Teva established the joint venture with Japanese company Takeda nine years ago. Teva believes the sale will help it focus on bringing innovative branded medicines to the Japanese market, and says the deal fits into its strategic growth plan. The financial details of the deal were not disclosed but are believed to be insignificant to Teva.

Teva got its start in Japan in 2008 when it formed a joint venture with a local generic drug company, and subsequently acquired two companies for more than $1 billion. The joint venture was dissolved several years later when Teva acquired half of the venture. In 2015, Teva established the joint venture with Takeda that it is now exiting, with Teva holding a 51% stake and Takeda 49%. In 2020, Teva announced its new strategic focus in Japan and the joint venture began focusing on unique innovative medicines and specific generic medicines.

“This is another step in our Pivot to Growth strategy to focus the business,” said Mark Sabbagh, Executive Vice President of International Markets at Teva. “Furthermore, we are confident that this agreement with JKI will ensure we continue to deliver high-quality, affordable medicines to patients in Japan.” “.

Teva has a market capitalization of $19.9 billion after its stock price has risen 66% since the start of 2024, despite the share price falling 1.93% on the TASE yesterday and 2.8% on Wall Street on Friday.

Published by Globes, Israel Business News – en.globes.co.il – on December 9, 2024

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