Japan's Eisai Co. Ltd. agreed to sell its entire stake in its wholly owned generics unit Elmed Eisai Co. Ltd. to Nichi-Iko Pharmaceutical Co., Ltd.

Eisai will transfer 20% of its stake in Elmed Eisai to Nichi-Iko Pharmaceutical on April 2, followed by a further 13.4% in October. The pharmaceutical company will transfer the remaining stake April 1, 2019.

Eisai's unit and Toyama, Japan-based Nichi-Iko will start co-promoting each other's products from October 2018.

The companies will also collaborate on using Eisai's active pharmaceutical ingredient plant in Vizag, India, to develop new products.