Takeda Chemical Industries Ltd. said Wednesday it has signed an agreement to conduct joint research and development on new pharmaceuticals with New York-based biotechnology venture Albany Molecular Research Inc.

Takeda has been working to team up with outside firms to beef up its R&D base.

The major drugmaker said it has already started joint research with Albany Molecular.

Under the agreement, Takeda will provide information on certain chemical products and their structures to the U.S. firm, which will conduct research to identify and develop small molecular "lead compounds" to be used as drug candidates.

Takeda will assess the drug-candidate compounds developed by Albany Molecular, which will then continue developing the compounds that meet the Japanese partner's criteria for turning them into drugs.

In addition to the expenses for the joint research, Takeda said it "may pay success fees for meeting certain development milestones and also a royalty on net sales of products that result from this joint research."

Albany Molecular Chairman Thomas D'Ambra said, "We hope to contribute to Takeda's drug discovery and development efforts and realize the opportunity for success fees and royalty payments in the future."

Takashi Soda, general manager of Takeda's pharmaceutical research division, said, "We are confident that we can further accelerate our research on creation of drugs through this joint research."

"Takeda is pursuing every possibility for enhancing its R&D pipeline, and promoting actively (an) alliance with our partners, so that we can utilize the outside resources efficiently in the research in medicinal chemistry fields" he added.