Teva pharmaceuticals, the world's largest generic drug maker has joined hands with Takeda Pharmaceutical Co, for a definitive agreement to sell generic drugs in Japan.

This project is to meet the rapid need of affordable medicines from growing population. The Japan government recently has been pushing forward the use of more generic drugs for reasonably priced treatments.

According to Reuters, Teva based in Israel on Monday reported that it had "unprecedented partnership with Japan," referring to the deal with Takeda, a Japanese company based in Osaka.

In a news statement at Teva website, Teva will own 51 percent of stake in this venture with Takeda. On the other hand, Takeda will have 49 percent in the project.

Japan has a growing demand in the healthcare sector. This new business venture's motive is to meet the wide range of demands of patients and increasing importance of generic in Japan. The project will be operating as an independent company with its specific CEO's, board of directors and Executives team. The proposed operations will begin by the mid of 2016 which depends upon regulatory approvals.

Siggi Olafsson, head of Teva generic medicines division said Reuters that the motive is, "to lead the high growth in the generic market in Japan." He added that "the project is aligned with the Japanese government objectives to reach 80 percent generic penetration by the end of the fiscal year 2020."

Dealing into Japan's pharma and the generic sector wasn't a difficult task for Teva pharmaceuticals. Teva made its first business ties in Japan in the year 2008 in a joint venture with Kowa Co. Later in the year 2011, Teva dealt with Taiyo Pharmaceutical, Japan's third largest generic maker.

Although both the pharmaceutical companies did not mention which drug would be sold by the venture and also the financial details, it has highlighted the pharma need to boost its profitability in Japan by next year.