Teva Completes Acquisition of Third Largest Generics Company in Japan
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.