Teva has agreed to acquire 57 percent share in Japan's 3rd larget generic drug company, Taiyo, for $460 M with plans to acquire the remaining shares in the future. This represents the firast foreign takeover of a Japanese generics firm.
The acquisition furthers Teva's plans to reach $1 B in generic sales in Japan, the world's 2nd largest drug market (pending China surpassing it soon), ahead of schedule in 2015. The purchase comes at a good time as Japan has the developed world's lowest generic drug sales rate at 23% of the market -- but its government has set a goal for this to increase to 30% by the end of 2012.
Teva will be picking up Taiyo's 550 generic drugs accounting for $530 million in 2010 sales. Said Shlomo Yanai, Teva's president and CEO, "This acquisition will enable Teva to deliver on our strategic objective of becoming a leading player in the fast-growing Japanese generics market."
Teva is the world's largest generic drug seller and continues to roll. It is not only growing its generics portfolio but expanding its branded drugs as well. It plans to increase revenues from branded medicines from $4.6 billion in 2010 to over $9 billion in 2015. See PBR and FT.com.
Posted by Bruce Lehr May 17th 2011.