Reports claimed that Israel’s Teva Pharmaceutical Industries Ltd. have bought 57% stake of Taiyo, which is the third-largest drug manufacturer of Japan. This deal was settled for $460 million cash.

This deal Taiyo an enterprise valuation of $1.3billion. The enterprise valuation is done by market capitalization and net debt.

Teva, which is presently the largest manufacturer of generic drugs, have claimed that this acquisition will add to the earnings in the fourth quarter in this year.

On the other hand, Taiyo have posted $530 million of sales in the year 2010. This company has license of over 550 generic drugs and also expertise in other therapeutic areas.

"This acquisition will enable Teva to deliver on our strategic objective of becoming a leading player in the fast-growing Japanese generics market. In fact, we now expect to reach our 2015 target of $1 billion in sales in Japan ahead of schedule', Teva Chief Executive Shlomo Yanai said in a statement.

Reports have claimed that Japan is the second-largest pharmaceutical market in this whole world with $96 billion in the year 2010. The Japanese government have expressed the wish t increase the generic drug market by the end of 2012.

Teva also posted a 7% hike in profits during the first quarter of the year.