The Transaction Promotes the Strategic Goals of Teva-KOWA PharmaJerusalem, Israel, December 24, 2009 - Teva Pharmaceutical Industries Ltd. (NASDAQ: TEVA) announced today that Teva-KOWA Pharma Co., Ltd., the Company's joint venture in Japan with KOWA Company, Ltd., has signed a definitive agreement to acquire a majority of the outstanding shares of Taisho Pharmaceutical Industries, Ltd. Under the terms of the agreement, Teva-KOWA Pharma will purchase at least 66.7% of Taisho's outstanding shares. The transaction is expected to close by the end of 2009. Financial terms were not disclosed.
Taisho manufactures and markets a portfolio of over 200 generic products to pharmacies, clinics, hospitals and wholesalers, through a well-established sales and marketing force. These efforts are supported by a finished dosage manufacturing facility and R&D capabilities. Taisho is a privately held company with revenues of over $130 million.
This acquisition will further advance Teva-KOWA Pharma in its strategic objective to become the provider of choice of high-quality affordable generic medicine in the Japanese market, supporting the Japanese government's initiative to increase the use of generic pharmaceuticals. Teva-KOWA Pharma will leverage Taisho's commercial presence in the Japanese generics market and its expertise in developing, registering, manufacturing and marketing generics in Japan.
Commenting on today's transaction, Shlomo Yanai, Teva's President and Chief Executive Officer, said, "We are very pleased with this important step, which will serve as a springboard for Teva-KOWA's operations in Japan. Taisho will bring invaluable local expertise and know-how to support our growth plan in Japan."
Mr. Kenichi Imoto, President of Taisho Pharmaceutical Industries said: "We have built Taisho as a provider of high quality generic pharmaceuticals to the Japanese people. Joining forces with Teva-KOWA marks a new beginning at Taisho. This new collaboration will enable us to take advantage of new opportunities in the market and grow our business even further. Taisho's management and employees are eager to join Teva-KOWA and move forward together to meet the challenges and goals of the combined companies."
Japan is the second largest pharmaceutical market in the world, valued at approximately $80 billion, with yet a very low level of generic penetration. According to IMS and the Japanese Generics Manufacturing Association, generic pharmaceuticals represented only 5.7% in value (approximately $4.6 billion) or 16.9% in volume in 2006. In 2007, the Ministry of Finance announced a plan to double generic utilization to 30% by 2012.
Teva Pharmaceutical Industries Ltd., headquartered in Israel, is among the top 20 pharmaceutical companies in the world and is the world's leading generic pharmaceutical company. The Company develops, manufactures and markets generic and innovative human pharmaceuticals as well as active pharmaceutical ingredients. Over 80 percent of Teva's sales are in North America and Europe.
About Teva-Kowa Pharma
The establishment of Teva-KOWA Pharma was announced in September 2008 by Teva Pharmaceutical Industries Ltd. and Japanese-based Kowa Company, Ltd. with the objective of becoming a broad based supplier of high quality generic pharmaceutical products in the Japanese market.
About Taisho Pharmaceutical Industries, Ltd.
With revenues of 12 billion yen, Taisho is the seventh largest generics manufacturer in Japan. The Company manufactures and markets over 200 products (120 molecules). Taisho's strong R&D capabilities enable the Company to continuously bring new products to the market. The Company employs approximately 400 employees. More information is available at www.taishoyakuhin.co.jp.
Teva's Safe Harbor Statement under the U. S. Private Securities Litigation Reform Act of 1995:
This release contains forward-looking statements, which express the current beliefs and expectations of management. Such statements are based on management's current beliefs and expectations and involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include whether and when the proposed acquisition of a majority stake in TYK will be consummated, Teva-Kowa' Pharma's ability to rapidly benefit from TYK's operations and Teva-Kowa Pharma's ability to accurately predict future market conditions, the regulatory environment and changes in the health policies and structures of Japan, the current economic conditions, competition from brand-name companies that are under increased pressure to counter generic products, or competitors that seek to delay the introduction of generic products supply interruptions or delays that could result from the complex manufacturing of products, the potential exposure to product liability claims to the extent not covered by insurance, exposure to fluctuations in currency, exchange and interest rates, impairment of intangible assets and goodwill, environmental risks, and other factors that are discussed in this report and in our other filings with the U.S. Securities and Exchange Commission ("SEC").