Teva-KOWA Pharma signs definitive agreement to acquire major shares in Taisho Pharmaceutical Industries

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.

“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.”

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.