Japan’s government has been pushing for affordable treatments in the country, and Takeda Pharmaceutical Co. (TYO: 4502) and Teva Pharmaceutical Industries Ltd. (TLV:TEVA) are attempting to fill the gap. The companies have partnered together to offer generic drugs in Japan at cheaper prices.
Teva will have a 51% stake in the venture, while Takeda will own a 49% share. Takeda is the biggest drug maker in Japan, and the partnership will allow the company to further assist those in need of affordable medical treatment.
Japan is trying find a way to help deal with the current aging population in the country. The country expects that spending on drugs will increase 3% to 4% over the next five years. Japan is working diligently to recommend generic drugs to patients. According to analysts, spending on generic drugs is expected to double as a result.
Under the new partnership, neither company has announced which drugs they will offer. A statement made by the partnership has shown positivity in Japan’s growing genetics market. Government policies for increasing healthcare expenditures will allow the company’s to profit on generic drugs in Japan.
Teva has been attempting to break into the Japanese healthcare market since 2008. The company has not released its earnings, but has stated that it is the third-largest distributor of generic drugs in Japan, with $700 million in annual sales.