ISRAEL – Teva Pharmaceutical Industries has reached an agreement to sell its 51% stake in the Teva Takeda Pharma joint venture in Japan to JKI, a fund managed by J-Will Partners.
Teva Takeda Pharma, a collaboration established in 2016 with Takeda, primarily deals with generic and off-patent medicines.
As part of the deal, JKI will take full control of the joint venture and its subsidiary, Teva Takeda Yakuhin.
Takeda will also transfer its 49% stake in the venture to Teva for JPY 55 billion (US $370 million).
This divestiture is in line with Teva’s “Pivot to Growth” strategy, enabling the company to redirect resources toward its pipeline of innovative drugs while shedding its generics and legacy assets.
Teva Takeda Pharma had initially been formed to capitalize on Japan’s growing generics market, but in 2021, Teva sold the majority of its traditional generics business to Nichi-Iko Pharmaceutical, focusing instead on complex generics and specialty products.
Teva’s decision to exit the joint venture is part of a broader strategy to streamline its operations amidst ongoing legal challenges related to the opioid crisis and the loss of exclusivity for its multiple sclerosis drug, Copaxone.
In addition to this sale, Teva has announced plans to divest its active pharmaceutical ingredient business, which could fetch up to US $2 billion.
The transaction is expected to finalize by April 2025, pending regulatory approvals, and it will not affect the jobs of employees at Teva Takeda Pharma.
Takeda will continue to distribute the products from Teva Takeda Pharma under the existing arrangements.
