Fujifilm plans JV with Dr Reddy8217;s

Facing ballooning medical costs from an ageing population,Japan8217;s government has said it wants generic drugs to make up 30 percent of the overall drug market by March 2013,prompting overseas firms to set their sights on the Japanese market.

The Nikkei business daily reported earlier on Thursday that the new joint venture would be owned 51 percent by a unit of Fujifilm Holdings and 49 percent by Dr Reddy8217;s.

The venture will manufacture drugs in India and test them for quality in Japan,the paper said,adding that it will aim to launch drugs on the Japanese market,the world8217;s second-largest after the United States,in 2014.

Other foreign drugmakers,including U.S.-based Pfizer and France8217;s Sanofi-Aventis ,have also made inroads in Japan8217;s generic drugs market,which accounted for 23 percent of its overall drug market for the year that ended in March.

In May,the world8217;s largest maker of generic drugs,Teva Pharmaceutical Industries ,announced a 460 million deal to acquire a 57 percent stake in Japanese generics maker Taiyo Pharmaceutical.

Fujifilm has been expanding into the medical and pharmaceutical industries as demand for its mainstay photo film paper business weakens amid increasing use of digital cameras.

The generic drugs joint venture comes after the Tokyo-based company agreed to buy Merck amp; Co8217;s BioManufacturing Network back in February.