Teva, the world’s largest generic drugs company, is establishing a joint venture with a Japanese counterpart as it aims to seize market share in the country’s fast-growing generic market.

The Israel-based company will set up an 50:50 partnership called Teva-Kowa Pharma, with the unlisted mid-sized Kowa through a joint initial investment of $300m. The partnership plans to research and develop generic drugs specifically for the Japanese market over the next few years.