Israeli generics giant Teva and Japanese drugmaker Takeda have agreed to form a partnership to address the growing importance of generics in Japan.

The 51:49 joint venture, which will operate independently of its parent companies, is expected to start operating in the second quarter of 2016. Neither the name of the jv, which will market both Teva's portfolio of generic medicines and Takeda's pharmaceutical products to Japanese patients and the national healthcare system, nor financiaI terms of the arrangement have been announced.

Siggi Olafsson, CEO of Teva's global generic medicines unit, said the deal "will create a company ideally positioned to lead the high growth in the generic market in Japan,” adding that “it will be aligned with the Japanese government’s objectives to reach 80% generic penetration by the end of fiscal year 2020.”

As a first step in the two drugmakers’ collaboration, Takeda announced last week it was launching Teva’s injection-based multiple sclerosis treatment, Copaxone, one of the most frequently used drugs in multiple sclerosis, in Japan.

Masato Iwasaki, director and president of Takeda’s pharma business unit for Japan, said the company “will continue to be committed to delivering drugs for diseases that remain as high unmet medical needs for both patients and physicians.”