Takeda Pharmaceutical Co. will sell its 49% stake in a generic drug joint venture to Teva Pharmaceutical Industries Ltd. for ¥55 billion ($366 million), marking a strategic pivot in Japan’s evolving pharmaceutical landscape.
The transaction dismantles the Teva Takeda Pharma partnership, formed in 2016, as both companies realign their business focus. The venture will ultimately land in the hands of Japanese private equity firm J-Will Partners through its subsidiary JKI.
Teva will complete its share of the transaction by April 1, subsequently transferring the business to JKI. The Israeli drugmaker said this move aligns with its strategy to concentrate on innovative medicines in the Japanese market.
The deal structure includes pharmaceutical wholesaler Medipal Holdings taking a 20% position in JKI. This follows J-Will’s pattern of investment in Japanese generic drug manufacturers, including stakes in Nichi-Iko Pharmaceutical and Kyowa Pharmaceutical Industry through a Medipal partnership.
Post-acquisition, the venture will rebrand as T’s Pharma in September. Takeda will maintain its distribution role, while all current employees will retain their positions under the new ownership.
This divestment reflects broader shifts in Japan’s pharmaceutical sector, where companies are reevaluating their generic drug operations amid changing market dynamics.
