Tokyo-based Astellas Pharma Inc. said today it will form a joint venture with major U.S. biotechnology company Amgen Inc. to develop and market drugs in Japan.

The new company will start business operations in October to develop five drugs, including for gastric cancer and osteoporosis, under a plan to launch drug sales in 2016.

Astellas expects to enhance its product development capabilities through the alliance, while Amgen hopes to secure a business base in Japan.

The joint venture will be 51 percent owned by Amgen and 49 percent by Astellas. In 2020, the venture will become a wholly owned subsidiary of Amgen, but the two companies will maintain their cooperation.