Medicines developer and producer Teva Pharmaceutical Industries Ltd (NYSE:TEVA) (TASE:TEVA) will pursue a new strategic focus in the Japanese market, the company announced on Thursday.

Nearly five years after it was established, Teva's joint business venture with Takeda in Japan will shift its focus to commercialising a selection of complex generics, specialty assets and other pipeline opportunities.

In conjunction with this decision, the Japanese business venture has agreed to divest the majority of its generic and operational assets to Nichi-Iko Pharmaceutical Co Ltd. This transaction is expected to be completed by early 2021.

The business venture will retain approximately 20% of its molecules and several pipeline assets, as well as its portfolio of authorised generics, LLPs and specialty assets.

"For Teva, and in line with the company's strategic objectives, the new model presents a chance to drive better performance by focusing our Japan business on a portfolio of select generics and pipeline of specialty assets, while continuing to put patients and healthcare professionals at the centre of our strategy," said Gianfranco Nazzi, Teva's executive vice president of International Markets Commercial.