Processing Magazine

Teva Completes Acquisition of Third Largest Generics Company in Japan

July 14, 2011

Business Wire reports that Teva Pharmaceutical Industries Ltd. has completed the acquisition of Taiyo Pharmaceutical Industry Co. Ltd. for $934 million in cash. Taiyo is the third largest generics manufacturer in Japan with sales of approximately $530 million in 2010. Taiyo brings to Teva a portfolio of over 550 products and a strong presence in all major channels in the Japanese pharmaceutical market. Teva also gains access to Taiyo''s strong R&D team, local regulatory expertise and a state of the art production facility. Following the acquisition, Teva expects to reach $1 billion in sales in Japan, ahead of its original 2015 target. Japan is the second largest pharmaceutical market in the world, valued at $96 billion in 2010 with only a 23 percent rate of generic penetration. The Japanese government has expressed its intention to increase generic penetration to 30 percent by the end of 2012. The transaction was funded through a combination of cash on hand and bank debt.